Picture: Nicholas Rama

Johannesburg – JSE-listed Real Estate Investment Trust Rebosis Property Fund reports net property income growth of 74.6 percent for the six months to February.

The company’s strategy is directed toward dominant retail malls and it recently internalised its management team.

Total distributable income increased 32.7 percent to R389 million from R293 million over the period, it says in a statement issued on Monday.

Following various acquisitions during the period, assets under management rose 51 percent to R17.9 billion from R11.8 billion.

A dividend of 60.08 cents per share has been declared for the six month period.  This amounts to 7.07 percent dividend growth year-on-year, which is in line with the 7 percent to 9 percent guidance expected for the financial year.

Rebosis’ South African retail portfolio makes up 62 percent of its South African assets and consists of six shopping malls with strong anchor national tenants delivering income streams escalating at 7.4 percent.

The office portfolio consists of 14 buildings in nodes attractive to government tenants. These buildings are mainly single-tenanted buildings let to the National Department of Public Works, providing for average escalations of 8.2 percent, it adds.

Read also: Rebosis on a roll with profit of R2.4bn

During the reporting period Rebosis concluded a watershed transaction valued at R5 billion which saw it acquire two large regional malls – Baywest Mall in Port Elizabeth and Forest Hill in Pretoria and internalised its asset and property management entities.

“This gave rise to the increase in market cap growth and share price appreciation and sees the fund further achieve its stated objective of becoming a retail-focused fund with an internalised management function.”

CEO Sisa Ngebulana says “we achieved exciting growth in both total assets and income during the 6-month period under review. We were also able to hedge 100 percent of our debt and extend debt maturity profiles in order to mitigate potential risks that arise as a result of a market downgrade and low economic growth.