A good performance from its retail-property portfolio boosted listed property loan-stock company Acucap Properties' distributions 15,48% to 91,3c for the six months to September, compared with the same period last year.
Commenting on the company's interim results published on Friday, Acucap MD Paul Theodosiou said on Sunday there were also "good rental increases" coming through when leases came up for renewal, as well as good turnover rentals.
Retail property comprises about 75% of Acucap's portfolio.
Turnover rentals are additional rentals paid once the tenant's turnover reaches an agreed threshold in terms of the lease agreement. It enables the landlord to participate in any trading upside enjoyed by the tenant.
Theodosiou said the vacancies in the retail portfolio were generally small with the only significant vacancy existing at the Checkers Hypermarket in Roodepoort, Johannesburg.
He said Acucap acquired the 25,000m? shopping centre with an 8500m? line shop vacancy. The company was busy with construction work "to optimise the configuration" of the centre. Acucap was also busy "retenanting" the vacant space. Anchor tenant Checkers was performing well.
Offices, which make up about 15% of Acucap's portfolio, had also been a solid performer for the company.
Theodosiou said there had been ?good contractual rental growth coming through? from the office portfolio.
"And at the same time the rental levels have remained close to market because the office market in general is showing some strong improvement."
Acucap's industrial property exposure is also set to increase in the future.
Industrial property makes up about 10% of Acucap's portfolio.
Earlier this year, Acucap announced a change in its industrial strategy, in terms of which the company would work with reputable developers to procure new investment opportunities offering critical mass in distribution-oriented industrial growth nodes.
The first such joint venture was the acquisition of an undivided 20% share in a 38ha industrial site in Midrand with the Improvon Group and Capital Property Fund.
This June, Acucap announced a second industrial-land joint venture with Improvon as the lead partner and Diversified Property Fund as an equal 25% holder with Acucap in a 61,5ha zoned industrial site adjacent to Montague Gardens in Cape Town.
Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge
