4AX listed, commercial property company Heartwood Properties, has just released its annual financial results for the period ending February 2020 boasting a 30% increase in its property portfolio value.

Despite an incredibly challenging year that has literally brought the building and construction sector to its knees, Heartwood Properties nett asset value has achieved a 20% growth, with a nett asset value increase per share of 9% and 20% since first listing on the exchange in 2018. Rental income has also increased, by 33%.

Says John Whall CEO of Heartwood Properties: “These results are encouraging and gives us much hope despite what market is reporting. Heartwood Properties remains a high quality business with a sustainable cash flow and a conservable managed balance sheet that has been able to withstand the short-term market uncertainty.”

Heartwood Properties have benefited from several successful ventures. These include the income generated from their Willow Wood Office Block D in Gauteng, which was completed at the beginning of the financial year and fully let on completion. A first-time investment made into the United Kingdom through a co-investment into the Blythswood Quarter commercial development in Glasgow with local developers Artisan Real Estate. The successful completion of the Soleil office development in Bryanston, which was very well received by the market and was completed under budget by the development team. And lastly a second capital raise, which was concluded in December 2019 thereby further increasing the shareholder base of Heartwood Properties.

Going forward, Heartwood Properties will continue to focus on their core business of developing high quality sustainable buildings underpinned by solid property fundamentals to achieve superior returns for our shareholders. Key value drivers in the business are about creating strong returns by developing offices and warehouses to a much focused tenant market. Active value enhancement asset management to maintain tenant offering and exceptionally low vacancy rates. Recycling of mature assets where the nett income has been maximised, offering special dividend returns back to shareholders when assets are sold.

Whall concludes: “Although the risks associated with the Covid-19 pandemic are difficult to predict at this stage, I feel that we are in a very strong position to successfully manage through this crisis and remain on our strategic growth path.”