Gemgrow Properties delivers solid maiden full year results

Posted On Wednesday, 15 November 2017 17:05 Published by
Rate this item
(0 votes)

Gemgrow Properties, a specialist high yielding, high growth REIT listed on the JSE, today released solid maiden full year results.

Alon_Kirkel_COO

The Company declared a dividend of 26,09 cents per A share and 19,00 cents per B share for the quarter ended 30 September 2017. This brings the total dividend for the full year to 101,87 cents per A share and 73,51 cents per B share, which is well in line with the forecast stated in the circular posted to shareholders in September 2016.

“As a unique high yielding, high growth fund, we are pleased to announce meeting our forecast, as per the circular, during this reporting period.

“We have successfully integrated the assets acquired from Vukile and Arrowhead.

“Gemgrow remains focussed on its core portfolio whilst actively pursuing yield enhancing acquisitions. We strive to be innovative and agile, adapting to ever changing conditions whilst actively managing our letting activities as well as streamlining efficiencies, providing accretion to our shareholders,” commented Alon Kirkel, COO of Gemgrow.

Gemgrow owns a portfolio of 129 retail, industrial and office properties valued at R4,5 billion, located across all provinces in South Africa. The total portfolio comprises 14% retail, 37% office and 49% industrial assets as measured by GLA. The average value per property as at 30 September 2017 was R34,6 million.

During the period under review Gemgrow acquired properties to the value of R580 million at a yield of 11,85%. The transfer of these properties will be effective in the new financial year.

“Gemgrow is uniquely positioned to consolidate high yielding assets in the market through yield accretive acquisitions on a fair value basis,” said Junaid Limalia, CFO of Gemgrow.

Vacancies marginally decreased from 7,73% to 7,71%; with retail at 5,77%, industrial at 6,18% and office at 10,51%.

Gemgrow has a strong balance sheet with a low LTV of 20,65%. The company refinanced R525 million of the R575 million that expired in September 2017 at a fixed rate of 9,39% over a five-year period. The remaining R50 million was recently refinanced for 5 years. 

For the properties acquired during the reporting period, R600 million in debt funding was secured at a fixed rate of 9,74%, over a period of five years. Our forward fixing of all the aforementioned transactions, has resulted in 94% of total debt being fixed from 15 November 2017.

“We actively manage the risks within our control. Our income is not materially exposed to a single tenant while our portfolio is diversified by sector, geography and grading. Our gearing and hedging of debt remains at prudent levels, providing good headroom for growth,” commented Junaid Limalia, CFO of Gemgrow.

Alon Kirkel, COO of Gemgrow concluded, “This year has seen its fair share of challenges, however despite this, Gemgrow has successfully concluded yield enhancing acquisitions, delivering on its mandate as a high growth high yield fund.

“The dividend growth from our current portfolio, including concluded acquisitions, is expected to be between 7% and 9% on the B share, for the 2018 financial year.”

Last modified on Wednesday, 15 November 2017 17:13

Most Popular

Growthpoint takes its first South African commercial property off the municipal water grid

Jul 19, 2018
TIM IRVINE
In a groundbreaking move, Growthpoint Properties has successfully taken a sizeable South…

Tshwane Regional Mall Is Inevitable

Jul 26, 2018
TSHWANE REGIONAL MALL
The company hosted a site walkabout to showcase this majestic development meant to…

2018 South African Institute Of Black Property Practitioners(SAIBPP) annual convetion to address'The new normal' In SA property

Jul 24, 2018
Nkuli Bogopa-SAIBPP
The South African Institute of Black Property Practitioners (SAIBPP) will be hosting its…

Growthpoint shares begin trading on the A2X today

Jul 18, 2018
Norbert Sasse_Growthpoint Properties
Growthpoint Properties (Share Code: GRT) shares began trading onA2X today as it became…

Investec Property Fund announces leadership changes

Jul 30, 2018
Nick Riley
Nick Riley to assume broader leadership role within Investec Bank Limited (“IBL”), with…

Please publish modules in offcanvas position.