Capital happy with its results in a tough market

Posted On Friday, 29 January 2010 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Capital Property Fund’s focus on selling poorer quality properties at the top of the property cycle and acquiring properties in prime nodes with corporate tenants is paying dividends.

Keillen NdlovuListed property unit trust Capital Property Fund’s focus on selling poorer quality properties at the top of the property cycle and acquiring properties in prime nodes with corporate tenants is paying dividends.

The total distribution for the year at the group, which focused on acquiring properties with sound property fundamentals, rose 14,4% to 54,58c a unit.

Capital said yesterday the properties had performed well in a market with higher vacancies.

Stanlib listed property analyst Keillen Ndlovu said the company had achieved “very strong” results in a recession. “This will be one of the highest distribution growths to be delivered this season.

“It is an outcome of a management strategy that looked beyond the economic boom. Management has built one of the most defensive property portfolios in the sector. Even this year’s distribution growth outlook of 9% 11% reflects that,” Ndlovu said.

Demand for industrial and commercial space was subdued with portfolio vacancies rising from 2,7% in December 2008 to 4,4% last month.

Conservative gearing at the top of the property cycle let the fund take advantage of the discount in the listed property sector in the past 18 months. Capital acquired 43169000 units in Pangbourne Properties at an average R13,85 for the long term.

Capital had reduced its holding in New Europe Property Investments from 6155000 shares to 4362837. The investment was no longer equity accounted, and the intention remained to sell the holding over time.

Meago property analyst Jay Padayatchi said Capital continued to focus on making itself a niche player in the industrial and office sector, making a tie-up with sister company Pangbourne a likely next step.

“With a focused management team, high quality of earnings, a stabilisation in vacancies and an improvement in overall gross domestic product growth, the forecast 25% of expiring leases in December this year is likely to prove more of an opportunity for Capital rather than a threat,” said Padayatchi.

Last modified on Monday, 28 April 2014 18:18
" "

Most Popular

Vukile transforms Pinetown’s first shopping centre, Pine Crest, into the first choice for shopping

Jul 25, 2019
 ITUMELNG MOTHIBELI
The renovated new Pine Crest launched today after an innovative R200m, 14-month…

Successful construction of CrestAquarium by Concor Buildings

Jul 25, 2019
 CRESTAQUARIUM 1
The indoor CrestAquarium at Cresta Shopping Centre allows shoppers to view more than 30…

The next wave of property development in Africa is coming

Jul 31, 2019
 NIYI ADELEYE
The past decade has seen South African property developers and investors forge their way…

Sandton Central’s private sector green building leadership contributes to better public spaces

Jul 25, 2019
 ELAINE JACK
From 2010, when Nedbank completed its headquarters on the corner of Rivonia Road and…

Centurion Mall, Redefine’s largest asset after comprehensive refurbishment

Jul 25, 2019
CENTURION MALL 1
The JSE-listed diversified real estate investment trust Redefine Properties today…

Please publish modules in offcanvas position.