Resilient and New Europe Property Investments boost listed property sector

Posted On Monday, 11 February 2013 15:50 Published by eProp@News
Rate this item
(0 votes)

South Africa’s listed property sector gained 1.3% during the week ended 8 February, after both Resilient and New Europe Property Investments (NEPI) reported results last week. 

Resilient reported distribution growth of 10.8% for the year ended 31 December 2012. This was slightly above market expectations.

Management's guidance for 2013 would also have pleased investors as management expects distributions to grow by approximately 10% in 2013, despite the less than favourable economic backdrop. According to management, last year's result was helped by an increase in turnover rental, the strong performance from property company New Europe Property Investments (NEPI) and a reduction in borrowing costs.

Resilient has committed R600m to an African joint venture with Standard Bank and Shoprite Checkers, and Resilient Africa has entered into memoranda of understanding with five Nigerian landowners.

NEPI's results for the year ended 31 December 2012 were equally pleasing for investors, with management declaring a final distribution of 12.05 euro cents for 2012. Distributions for the year as a whole increased by 15% in euros and most analysts expect a similar level of distribution growth in each of the next three years.

NEPI's share price increased by 3.5% last week, on the back of the results announcement, while Resilient's share price gained just 0.8% despite the company's pleasing numbers.

The market will now turn its attention to Growthpoint and Hyprop, with both companies expected to report later this month. Hyprop is expected to deliver distribution growth of approximately 7% for the year ended 31 December 2012, while Growthpoint's interim results are expected to show the company is on track to deliver distribution growth of approximately 6.5% for the year ended 30 June 2013.

The forward yield on the sector has declined marginally to 6.7%, but there are still a number of smaller listed property companies offering forward yields in excess of 8%.

Top 5 performers for the week ended 8 February 2013

Synergy A

9.09%

NEPI

3.54%

Premium

3.47%

Hyprop

2.84%

Vunani Prop

2.56%

Source: Grindrod Asset Management

 

Bottom 5 performers for the week ended 8 February 2013

Redefine Intl

-0.38%

Fortress B

-0.67%

Sycom

-0.84%

Hospitality A

-1.17%

Octodec

-2.52%

Source: Grindrod Asset Management

Last modified on Monday, 11 February 2013 16:12

Most Popular

Should you rent or buy your business premises?

Jun 23, 2022
Malusi Mthuli_FNB
This is a question that most business owners will face at some point in their journey.…

April 2022 Hotel Accommodation Income Statistics continue to show a very weak picture compared to pre-lockdown times.

Jun 23, 2022
Hotels Monthly Income 2022
The StatsSA release of April 2022 preliminary monthly tourism statistics show the Hotel…

South Africa’s inflation exceptionalism: can it last?

Jun 23, 2022
Carmen Nel
South Africa is often seen as a high-beta play, be it regarding financial market risk…

Hyprop continues to reduce debt and reposition its portfolios in SA and EE

Jun 30, 2022
Skopje City Mall Playground
Hyprop, which manages dominant retail centres in mixed-use precincts in key economic…

Vaal Mall rolls up its sleeves for pothole repairs

Jun 30, 2022
Vaal Mall crew busy repairing the various potholes making easier access to the Centre.
Vaal Mall is showing their commitment towards their community by stepping up to repair…

Please publish modules in offcanvas position.