Nick Wilson

Property Correspondent

CBS Property Portfolio, which listed on the JSE main board on November 2 last year, reported this week that its distributions increased 16,2% for the year to October.

The company said the distributions grew to 64,5c a linked unit, with executive director Gary Fisher attributing the increase to the annual growth in rentals and the acquisitions of yield-enhancing property during the period.

CBS said rental revenue increased 43% from R49,3m to R70,3m.

CBS said its property portfolio increased in value from R464m to R998m during the period.

Fisher said plans by CBS to increase in size had resulted in acquisitions worth about R122m since listing.

"We’re working on quite a few more acquisitions and our goal is to move ourselves into the mid-cap (medium market capitalisation) range in the short term."

He said CBS focused on offices and retail properties in the major metropolitan areas of SA.

Fisher said the acquisitions were designed to give it a sustainable and growing income stream.

Among the company’s properties are the R70m Brait Place building in Illovo and Morningside’s Wedge shopping centre.

CBS has bought Malvern Centre in Queensburgh, KwaZulu-Natal, and a portfolio of nine properties from Growthpoint Properties.

Angelique de Rauville, MD of Investec Listed Property Investments, said her company was cautious when it came to investing in new property companies because they tended to "underperform" the market.

But De Rauville said they believed CBS could be "one of the exceptions to this".