Tower Property Fund maiden H1 distribution 33c

Posted On Friday, 24 January 2014 08:36 Published by
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Tower Property Fund declares a maiden distribution of 33c for the 6 months ended November 2013.

Marc EdwardsTower Property Fund which listed on the JSE in July last year has declared a maiden distribution of 33c for the six months ended November 2013.

The group reported headline earnings per share of 42.5c for the period‚ exceeding its prelisting forecast.

The group owns a diversified portfolio of 27 commercial and retail properties valued at R1.64bn‚ located mainly in Gauteng (51% by value) and in the Western Cape (46% by value).

The fund is underpinned by a “greening” strategy. One of Tower’s Sandton office blocks is expected to be awarded a 6-Star Green Star rating by the Green Building Council South Africa.

CEO Marc Edwards said the results for the six months represented an annualised income return to investors of 9.6%‚ outperforming the average of the listed property sector.

He said the fund had taken on the management of 27 properties‚ reduced operating costs across the portfolio and made progress with the greening strategy that underpinned the fund.

A strong focus on property asset management had resulted in significant savings by rationalising service agreements and letting vacant space‚ he said.

More than 10‚000m² of space had been let to date‚ reducing vacancies from 11.5% at the end of November 2013 to 8.5%. Edwards said the vacancies were largely covered by rental guarantees.

Looking ahead‚ the company said management would continue to focus on the acquisition of strategic properties to ensure the sustainability of the fund and to enhance returns for investors.

Commercial property totaling R300m is currently under negotiation with a pipeline of a further R500m in acquisitions being evaluated.

“Tower will continue to upgrade and add value to buildings over time‚ as well as seeking ‘greenable’ properties as the portfolio is expanded‚” the company said.

Management aimed to reduce debt costs by funding a portion of the debt through the debt capital markets as the fund grew.

Last modified on Friday, 24 January 2014 09:31

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