Share

Rebosis posts solid results, pursues mergers

accreditation
(Shutterstock)
(Shutterstock)
Johannesburg - Black-managed property fund Rebosis [JSE:REB] on Thursday posted a solid set of results, with distribution growth increasing by 9% to 48.5 cents per linked unit in the six months to end-February 2014.

CEO Sisa Ngebulana, said in an interview with Fin24 that the distribution growth is quite good compared with the market and despite tough economic conditions.

Referring to distribution growth of 9% compared with the comparable period last year, Ngebulana said "it is not easy to report excellent results in such market conditions, so we're quite pleased".

Investors cheered the results, sending the share price up 4% to R11.55.

This growth the fund mainly attributed to better portfolio fundamentals, a decrease in the overall cost of funding from 8.5% to 8.0% and continued operating efficiencies across the portfolio.

He said Rebosis also managed to grow its assets "from about R4.6bn to R7.01bn... which is quite commendable".

Including the Nthwese portfolio, this represents a 51% increase in total assets.

Despite interest rate hikes, tenant failures and rising vacancies, Rebosis has maintained a high occupancy rate of 98%, "I think one of the best in sector", he said.

"We are well placed in the market for future growth."

Watch



On the acquisitions of Delta and Ascension, Ngebulana said that the mergers will create an asset base of just under R18bn and a market capitalisation of just over R10bn, which will place Rebosis among the top ten in the sector and create liquidity for the fund.

"(This will be) something good for our shareholders... with more liquidity, hopefully it will give rise to a re-rating of our stocks and  will gear us as a good counter... better counter," he said.

At the beginning of February this year, Rebosis announced the acquisition of Ascension Property Management for an aggregate purchase price of R150m. In addition to this, the fund acquired 29.05% of Ascension's B linked unit capital, which represents 15.96% of Ascension’s total issued linked unit capital.

This forms part of the fund’s strategy to bulk up the portfolio and further to this, Rebosis is in ongoing negotiations with Delta Property Fund and Ascension to merge the three funds, the group said in a statement.

Watch

 

- Fin24
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.95
-0.3%
Rand - Pound
23.96
-0.3%
Rand - Euro
20.46
+0.0%
Rand - Aus dollar
12.36
-0.0%
Rand - Yen
0.13
-0.3%
Platinum
911.00
+1.6%
Palladium
1,012.02
+1.0%
Gold
2,214.22
+0.9%
Silver
24.75
+0.4%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders