Texton grows distributions despite struggling office sector

By Alistair Anderson

Texton Property Fund (TEX) grew its distributions per share 10.6% to 85.47c per share in the year to June.

“This has been a busy and positive year for the fund (which) has performed exceptionally well‚ particularly given the tough market conditions. A number of fundamental changes have provided us with a solid platform from which to grow our asset base and deliver sustainable‚ superior earnings for our shareholders‚” said CEO Rob Kane.

In early August‚ Texton changed its name from Vunani Property Investment Fund following the cession and assignment of the asset management agreement to Texton Property Investments.

“The past 12 months have been challenging‚ especially in the office sector‚ but all of the fund’s key performance indicators have improved‚” Mr Kane said.

Vacancies improved to 5.3% on a total gross leasable area of 190‚116m²‚ much lower than the commercial office sector average of 11.3%.

Mr Kane said it was important that tenant retention remained “very high at 82.5%”.

Old Mutual Investment Group’s Evan Robins said the results were strong.

“Even though they are an office fund‚ and offices are struggling‚ they managed to deliver double-digit distribution growth and are expecting strong results next year too‚” he said.

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