Accelerate Property Fund reports solid annual results and enhanced portfolio quality

Posted On Wednesday, 14 June 2017 16:25 Published by
Rate this item
(0 votes)

Accelerate Property Fund, the JSE listed REIT with significant exposure in the dynamic Fourways node in Johannesburg, today announced solid Annual Results for the year ended 31 March 2017.

Fourways_Mall_Redevelopment

Accelerate reported year-on-year distribution growth of 7,3%, translating into a distribution per share of 57.57 cents, up from 53.67 cents year-on-year.

Accelerate’s property portfolio has grown to R11.6 billion, resulting in a 38% increase for the comparative period. The increase is largely due to Accelerate’s initial offshore investment of R1.25 billion, the acquisition of approximately 50% of the iconic Portside tower in Cape Town for R755 million, Eden Meander retail centre in George and the Citibank building in Sandton.

“Notwithstanding the tough current macroeconomic environment, we remained focused on active asset management. Our aim is to continually improve the quality of our portfolio through quality acquisitions and the sale of non-core properties.

“This year was a very important year for Accelerate. We diversified our portfolio offshore by creating a bespoke strategy to invest in long-term single tenant net leased properties that are strategic to blue-chip multinational or large regional tenants in Central and Eastern Europe. On the local front, we have also made excellent progress with the Fourways Mall redevelopment and continued with our drive for quality,” said Andrew Costa, Chief Operating Officer of Accelerate Property Fund.

Our nodal strategy remains our key local differentiating factor. The Company focuses on nodes that are deemed to have good economic fundamentals and superior growth potential. The strategy allows for economies of scales within these nodes where any investment in improving specific properties, infrastructure or services is to the benefit of other assets owned by the Company in the same area.

The constant focus on tenant optimisation and letting activity resulted in vacancies (net of structural vacancies) marginally decreasing to 6,9% from 7,1% whilst the weighted average lease period improved from 5,1 to 5,6 years during the reporting period. The company’s cost-to-income ratio of 16,9% is in line with the market.

The Fourways Mall redevelopment is well underway having opened Bounce and the food court during the reporting period. Infrastructure upgrades in excess of R280 million are underway, including a flyover from Witkoppen Road directly into the new multi-level parking.

“The completed Fourways super-regional mall will anchor the Fourways node, attracting top-quality tenants in the retail and office segments,” said Costa.

In February 2017 Accelerate announced the acquisition of the Murray & Roberts building in the Cape Town Foreshore which together with Accelerate’s existing properties in the node, lends itself to a large scale commercial and residential development opportunity. In addition, the Fund has acquired a Sandton office building anchored by Citibank. Both these acquisitions are strategic and represent Accelerate’s focus to acquire quality enhancing properties.

Last modified on Wednesday, 14 June 2017 17:38

Most Popular

Exemplar REITail Acquires Katale Square Shopping Centre

Sep 23, 2019
 JASON MCCORMICK
Real estate investment trust, Exemplar REITail, has acquired Katale Square shopping…

Mall of Africa Celebrates Launch of New Generation Pick n Pay Store

Sep 23, 2019
 MOA PNP  1
Today Mall of Africa welcomed one of South Africa's biggest grocery retailers to the…

Grit Real Estate financial results for the year-ended 30 June 2019

Sep 30, 2019
 BRONWNY CORBETT
London Stock Exchange listed Grit, the only listed Africa-focused income distribution…

4AX listed Heartwood Properties reveals positive financial results

Sep 23, 2019
 JOHN WHALL
Commercial property development company, Heartwood Properties , has revealed a 30%…

Reserve Bank keeps repo rate unchanged

Sep 23, 2019
 LESETJA KGANYAGO
 South African Reserve Bank Governor Lesetja Kganyago on Thursday said this is in line…

Please publish modules in offcanvas position.