Exemplar REITail raised the dividend 51.5% to 68.71483 cents per share (cps) in the six months to August 31, 2022, as it continued to reap benefits from its focus on rural and township retail properties.
The dividend meant 97.9% of distributable income was being distributed. The company has 23 retail assets in its portfolio with a combined gross lettable area of 380 512 square metres. It is the only South African property fund that is focused exclusively on rural and township retail.
“We remain confident in the strength of the township and rural retail space. Exemplar has expanded its focus on the acquisition, ownership and management of assets in this space to include development,” CEO Jason McCormick said in a statement.
“These results are reflective of the stability of the Exemplar portfolio, and the potential it holds for prospective shareholders as we look to increase liquidity to accelerate our next phase of growth,” he said..
The real estate investment trust opened KwaBhaca Mall in Mt Frere, Eastern Cape, at the end of October 2022. It is the first asset to be developed within the REIT and spans 18 829 square metres.
The double-level mall is the first of two developments undertaken by Exemplar, with Bizana Walk, also in the Eastern Cape, expected to open before the end of the year.
“We are confident that the move to develop carefully selected assets within Exemplar, along with our continued focus on the roll-out of environmentally responsible practices such as wastewater management and rooftop solar PV systems within our existing portfolio will continue to provide solid results and market-leading dividend distributions,” said Jason.
Management said highlights included an 8.54% increase in the weighted average anchor trading densities, to R4 714 per square metre and a 6.4% increase in basic rental. The loan-to-value ratio was at a comfortable 34.8% with net asset value per share at R12.60.
Vacancies on September 1, 2022, were 2.87%. Excluding the troubled Acornhoek Megacity, the portfolio vacancies are 2%.
Operating costs increased by only 0.8%, a well below inflation increase which management said was the result of ongoing efficiencies realised through the utilities management programme, spearheaded by the roll-out of the solar PV projects across the portfolio, as well as the recovery of some arrear rental previously provided for.
The rebuilding of Edendale Mall, which was substantially damaged during the July 2021 riots, was nearing completion. Phase 1 of the rebuild opened at the end of August, phase 2, measuring 11 378 square metres in gross lettable area, will open by November 24, and the third and final phase of 6 656 square metres was scheduled to open by March 24, 2023.
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