CAPE TOWN - Indluplace Properties’ second-half performance had improved as anticipated, the real estate investment trust said in a market update on Friday.
In its interim results the company warned that trading conditions were expected to remain tough, but certain building-specific strategies, a strengthened head office team, continued letting at Highveld View, and the seasonality experienced in the residential sector would result in an improvement in the second half.
The share price rose 3.45percent on Friday to R4.50. The Highveld View 450-unit complex in Witbank would be about 65percent let at the end of September, versus 37percent at the end of March. Letting of No1 Eloff Street, with 320 units, had improved from 74percent as at March 31, to about 97.5percent let as at September 30.
The Indluplace portfolio was about 92.5percent let, a statement said. The acquisition of 70 newly, fully let phases of Golden Oaks in Boksburg was completed in August, bringing the number of units acquired in the year to 210 units; all funded by debt resources. Indluplace’s loan-to-value at year-end was expected to be about 35percent, slightly higher than at March 2019, but in line with expectations.
Indluplace intended to reduce gearing as non-core asset disposals were sold. Grant Harris joined the company as chief operating officer in July.
The number of asset managers increased from one to two, and a utilities manager had been appointed to assist with resolving council account queries and improve recoveries. Furthermore, a financial analyst and in-house letting agent had been appointed.