Johannesburg - Indluplace Properties expects to benefit from the tough economic environment and shift towards residential rental properties.
Carel de Wit, the chief executive of Indluplace, said yesterday that Indluplace was on track to achieve a full-year dividend a share of 92.5c for the year to September, which was more than 10 percent higher than its listing forecast.
Terry Kaplan, the financial director, added that Indluplace remained ungeared and was well positioned in the uncertain macroeconomic environment to take advantage of opportunities expected to arise in a rising interest rate environment where residential rental properties should become more attractive.
Indluplace listed on the main board of the JSE in June with a property portfolio valued at R1.1 billion and paid quarterly dividends.
It yesterday declared a dividend of 23.07c a share for the quarter to March. This increased the total dividend for the six-month reporting period to 46c a share, which was in line with guidance.
Indluplace acquired properties valued at R500 million in the reporting period, increasing the portfolio from 95 to 109 with the total value increasing from R1.7bn to R2.2bn.
De Wit said they were pleased with the performance of the existing portfolio, especially the newly acquired properties, and had made good progress with growing a diverse portfolio across building types and income levels.
“We continue to focus on finding yield accretive, quality residential portfolios that provide income from the date of acquisition,” he said.
Kaplan said they were excited about the growth in Indluplace and the opportunities they believed the current market conditions would present once acquisition prices adjusted in line with the current financial climate. The Prime and Connaught portfolios were acquired for about R500m in the reporting period.
Complexes
The Connaught portfolio comprises nine high-rise buildings with 1 181 units in the inner city of Johannesburg and the Prime portfolio of three suburban townhouse complexes in Florida, Springs and Fourways comprising 166 units.
Indluplace in March last year was a wholly-owned subsidiary of listed Arrowhead Properties with a property portfolio valued at R785m. It owned 5 037 residential units at the end of March this year.
The letting of complexes handed back at Honey Park is progressing well. Residential vacancies in the six-month reporting period rose to 6.2 percent from 3 percent in September. Retail vacancies increased to 5.1 percent from 3.5 percent.
Revenue increased to R160.7m from R41.5m, largely because of the increased size of the portfolio. Property expenses increased to R56.2m from R13.9m.
Indluplace shares were unchanged at R9.01 yesterday.
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