The listed property trust company SA Corporate Real Estate Fund’s (SA Corp) results for the six months until end-June reflect that the new management is turning the company around.
SA Corp, which owns a portfolio of retail, office and industrial properties in the most important metropolitan areas across SA, declared a disbursement of 14,24c per unit for the six months until end-June, a rise of 7,6% compared with the six months until end-December last year.
However, the disbursement was 1,5% lower than the 14,45c per unit during the corresponding period in 2009.
Keillen Ndlovu, assistant head of Stanlib’s property funds, says these results are in agreement with the expectation.
“Although the retail portfolio still faces some challenges, the prospects are positive,” he says. However, the growth is off a low base.
The transfer period has been characterised by a reduction in the company’s vacancy rates from 8% of the total gross rental space in December to 6,7% at the end of June this year. It was mainly due to the reduction in the vacancy rate in the industrial portfolio to 3,4%.
The vacancy rate in the retail portfolio is stable at 8,3%.
However, the vacancy rate in the office portfolio rose to 19,4%. Altogether 43% of this figure represents office space in retail centres, including Northpark Mall and the Musgrave Centre.
SA Corp’s units traded at 290c each at the end of June, a discount of 11% on the nett asset value of 327c per unit.
Against the background of lower interest rates, lower vacancy rates supported by refurbishments and the economic recovery, the management expects SA Corp to deliver positive disbursement growth for the full 2010 financial year and thereafter. – Elma Kloppers, Sake24
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