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Aug 27, 2007:
Property group SA Corporate Real Estate Fund (SAC) reported a 26% rise to 17c in distribution per linked unit for the interim period ended June, it reported on Thursday.
Income rose to R277,4m from R153,8m while rental income increased to R210,2m from R133,2m.
SA Corporate, the third largest property stock by market capitalisation on the JSE, said the distribution for the period included about 2c which arose from the SA Retail acquisition.
"The underlying property portfolio has performed well and has continued to enjoy excellent occupancy levels," the company said.
Properties in its portfolio are 98% occupied.
It added that following the revaluation of its portfolio at the end of June, its properties were now worth R328m. "The bulk of the increase in value has been seen in the industrial portfolio reflecting demand for such property and increased market rentals levels," the group said.
In the last six months, the company bought the R3,4bn property loan stock SA Retail, including the R1bn Sharemax portfolio. In addition, four investments were made at the total cost of R208m.
These acquisitions were Forest Road Design & Décor Centre for R103m, 293 Hebbard Road for R17,5m, Cullinan Jewel Shopping Centre for R45m and the Ridge for R42,5m.
The company is waiting for the Competition Commission's approval – which is expected by the end of next month - to buy Buffcol Properties for R965m.
At the same time the group has put up for sale properties worth R55m, in line with its strategic disposal activity which has seen 27 properties worth R281m sold over the last two years.
The company's strategic disposal activity aims to improve the overall quality of the portfolio and its earnings growth potential.
After the acquisition of Buffcol has been approved, the group's portfolio would comprise 197 properties with a value of R8bn. - Tiisetso Motsoeneng, I-Net Bridge
