Fairvest Property Holdings delivers on distribution forecast

Posted On Thursday, 06 March 2014 18:30 Published by
Rate this item
(0 votes)

JSE-listed Fairvest Property Holdings today reported results for the six months to 31 December 2013, achieving a distribution of 6.75 cents per linked unit.

Darren Wilder, Fairvest Property HoldingsJSE-listed Fairvest Property Holdings today reported results for the six months to 31 December 2013, achieving a distribution of 6.75 cents per linked unit and staying on track to achieve its adjusted distribution target of 13.70 cents for the full year.

Chief executive Darren Wilder said the company's property portfolio had performed well in a challenging environment.

New leases totalling 3 688 m² and renewals totalling 7 942 m² were concluded, with a weighted average escalation on renewals of 10.2%.

The weighted average lease term for the portfolio is 3.6 years. In addition, vacancies had been reduced by 6.9% to 8.4%. Excluding vacancies structured for redevelopment and a vacant warehouse currently under contract to be sold, the effective vacancy rate is 3.0%.

Wilder said the interim results marked a further advance in the implementation of Fairvest's strategy of optimising and extracting maximum value from its current property portfolio, improving the quality of the assets and tenant base through targeted acquisitions and maintaining a strong focus on sustainable distribution growth.

"Any transaction we consider has to enhance income and distribution growth. Given that indications are that we are heading into a high interest rate cycle we are mindful of the fact that there could be a correction in asset values in the next 12 months, so what you buy today could be cheaper in six month time," Wilder said.

Since the end of the review period, Fairvest has taken transfer of four properties acquired from Vukile, which will boost the value of its portfolio beyond the R1 billion mark.

Fairvest was converted to a Real Estate Investment Trust effective from 1 July 2013 following JSE approval.

Last modified on Friday, 07 March 2014 09:19

Most Popular

It’s cheaper to buy than to rent a home in 2021

Feb 08, 2021
If the past year has taught us anything, it is how important our homes have become to us.

SA REIT Association - Chairman's message and 2021 sector outlook

Feb 02, 2021
Estienne de Klerk_Chairman of SAREIT
Real estate has long been a rewarding sector of the financial markets. Like all sectors,…

Thavhani City set for more growth in 2021 as its Motor City and medical developments accelerate

Feb 15, 2021
Thavhani City mixed-use urban precinct in Thohoyandou, designed to be the future economic…

Brand new residential development in La Lucia 60% sold through Pam Golding Properties

Feb 15, 2021
Such is the consistent high demand for centrally located, well-priced residential…

Teraco concludes R2.5 billion funding round for data centre construction

Feb 03, 2021
Teraco Data Environments Proprietary Limited, Africa’s largest interconnection hub and…

Please publish modules in offcanvas position.