CAPE TOWN - INVESTEC Property Fund (IPF) declared a 47.71 cents per share final dividend in the six months to March 31, bringing the full year dividend to 92.23 cents per share and reflecting a 95 percent of distributable earnings payout ratio.
Distributable earnings fell 33.8 percent year-on-year to 97.08 cents per share, but the gearing was at 38.3 percent at year-end, allowing IPF to continue paying out dividends throughout the pandemic and leaving it well positioned for future growth, a statement from the group said yesterday.
Joint chief executive Andrew Wooler said the South African portfolio weathered a greater Covid impact. Europe, however, saw logistics demand and structural changes accelerate through the pandemic, underpinning the fund’s stability through the downturn.
Delivery on strategy through the global uncertainty and volatile operating environments included completion of the degearing flightpath following a debt refinancing, and exiting minority positions in Australia, UK and the Pan-European light industrial platform (Peli).
Joint chief executive Darryl Mayers said they were pleased with the performance of their assets in South Africa and Western Europe.
“South Africa remains a core focus for the fund, with the local portfolio comprising of 90 high-quality properties in strategic, well-located nodes. Despite an under-pressure economy, the second half saw a moderate recovery in the SA business, depicted by an improvement in the debtors’ position, stronger rental collections, recovery of rental deferral concessions previously granted and no insolvencies,” said Mayers.
The European portfolio continued to perform well, benefiting from the acceleration of growth drivers in the sector as a result of global lockdowns, strong rent collection rates, low tenant defaults and high occupancy rates. The 2022 financial year was being approached “with cautious optimism,” the group said.
BUSINESS REPORT