INVESTEC Property said yesterday in a trading update for the financial year ending March 2022 that it was on track to deliver its distributable income per share (Dps) guidance as outlined in its interim results.
Dps was expected to see year-on-year growth of 10-12 percent, or 106.75 cents per share (cps) to 108.75 cps. This was boosted by the stabilisation of its South Africa business following decline in vacancies, a reduction in the Covid-relief programme and a consistent performance from the Reit’s pan-European logistics platform.
There was continued buoyancy in the European logistics sector. Its net property income (NPI) was up 3-5 percent, driven by positive letting activity and lower bad debt provision.
In South Africa NPI rose 8-10 percent driven by lower Covid related rent-free concessions granted to tenants, and significant progress in letting activity, which resulted in a decline in vacancy from 11.4 percent at the start of the year to below 6 percent
Investec Property said positive momentum was sustained in the second half, supported by gradual recovery in the domestic market with noticeable improvement in leasing activity.
It was now targeting a dividend payout ratio of 95 percent underpinned by Dips growth, while its loan to value remained stable at around 38 percent.
The Reit said it had R1.3 billion total debt maturing over the next 12 months, including €40 million (R652m) foreign term debt, with refinancing under way.
The firm plans to release its annual results on May 18.
In midday trade yesterday the share was up 1.98 percent to R11.83, but up 28.89 percent in a year as the Covid-19 pandemic eases and resultant lockdowns.
BUSINESS REPORT ONLINE