Prime retail properties in Pretoria and Johannesburg helped boost Octodec’s net rental income by 34,3% to R53,6m. They continue to perform due to favourable renewals and contractual rental escalations.
“The redevelopment of Killarney Mall, extremely positive trading conditions and strict expense control all contributed to the growth in distributable earnings”, says Russell Inggs, Octodec executive director.
The property loan stock company’s retail portfolio comprises investments in five shopping centres - Killarney Mall, Woodmead Value Mart, Elardus Park, Waverley Plaza and Gezina Stad – and accounts for 65% of the company's property income.
Killarney Mall is Octodec’s prime retail property and was refurbished at a cost of R97m.
The group has recently finished refurbishing Gezina Stad and plans to start work on Waverly Plaza later in the year.
The group took advantage of the buoyant property market and bought five properties for R99m. Two of the properties are shopping centres in the Pretoria CBD and the balance is light industrial properties in Selby and City Deep.
Octodec’s assets exceed R1,4bn. Distributions to unit holders rose 34,5% to 42,5c per linked unit.
Inggs expects favourable economic conditions to continue and is optimistic about Octodec’s ability to grow earnings “on par with, if not better than, the market average”. The share price was up 0,9% closing the day at R11,75.
