SA Corporate FY distribution up 8.6% to 32.75c per unit

SA Corporate Real Estate Fund (SAC) has reported an 8.6% rise in full-year distribution to end-December to 32.75c per unit compared with the year-earlier period.

SA Corporate said on Monday that its four-pillar strategy to turnaround the fund had delivered.

The company owns a portfolio of industrial‚ retail and commercial buildings located primarily in the major metropolitan areas of South Africa.

The fund achieved standing portfolio net property income growth of 5.6% and 9.1% on an absolute and per unit basis respectively.

The company said industrial rental growth was up 7%‚ underpinned by weighted average rental escalations of 8.2% and the leasing of vacant space. Retail standing portfolio net property income growth was up 7.5%‚ with commercial rental growth increasing by 4.5%.

“The board is pleased with the turnaround of the fund in 2013 and is confident that it is now on a firm footing to deliver distribution growth at least on par with the sector average for listed entities invested in South African property‚” the company said.

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