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
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