SA Corporate Real Estate Limited has released its condensed, unaudited, consolidated interim financial results for the six months ended on 30 June 2021, declaring a distribution of 10.27 cents per share (June 2020: 0 cents per share).
Reporting a decreased loan-to-value (LTV) of 38.4% (December 2020: 38.65), the company’s balance sheet reflected interim distributable income of R344.5 million or 13.70 cents per share (June 2020: R311.1 million or 12.37 cents per share) with an increased total net property income of R589.8 million compared to 2020’s R542.4 million and total like-for-like net property income of R545.4 million (June 2020: R500.7 million).
Headline earnings per share of 23.82 cents were reported compared to the -8.25 cents in June 2020 with earnings per share of 11.39 cents (June 2020: -43.79 cents). The company reported net asset value per share of 393 cents compared to the 401 cents reported in December 2020.
With a mixed portfolio of industrial, retail, commercial, and residential buildings across South Africa and Zambia totalling 1 386 723m2 of lettable area and valued at R15.3 billion, the company’s traditional portfolio vacancies sat at 3.6% of gross lettable area (GLA) compared to 5.0% in June 2020.
In a separate SENS announcement, the REIT announced the disposal of a property portfolio consisting of residential, commercial rental businesses and development land in Johannesburg’s inner-city to Firstmile Properties (owned by Lonsa Group Limited) for a total consideration of R546.25 million.
The disposal, including Cavendish House, Greatermans, Ilanga House, Lustre House, Queen’s Court and Sambro House in Johannesburg, is in line with the company’s strategy to increase its suburban residential portfolio through a partial divestment of non-precinct inner-city properties while reducing its exposure to inner-city properties that are not located in the precincts in which its subsidiary, Afhco Group of Companies, can ensure accessibility, security, and lifestyle amenities
SA Corporate Real Estate anticipates that all conditions precedent will be fulfilled by late December 2021 whereby the assets will be transferred to the purchaser as soon as possible. Should the assets not be transferred within twelve months after the signature date of the agreement, either SA Corporate Real Estate or Firstmile Properties have the option to terminate the sale.