Investec Property Fund said on Wednesday it is keeping its distribution guidance for the year to end-March unchanged at between 3% of 5%, though this is dependent on its offshore operations as SA conditions continue to deteriorate.
The fund grew distribution per share 3.1% 70.93c in its six months to end-September, largely driven by its offshore portfolio, where strong letting activity continues to support its switch in focus to European logistics and light industrial properties, it said. The group’s SA portfolio saw like-for-like net property income growth of 1.3%, which was subdued by a rise in bad debts and negative rental reversions. The SA property portfolio of R17.3bn accounts for 80% of the group’s balance sheet.During the period it increased its exposure to pan-European logistics and light industrial properties, and intends to continue to deploy capital to this area.
IPF said on Wednesday investment returns from its pan-European logistics platform continue to be in excess of the investment case of 10.5%, with a current yield of 12.3% in rand terms.“The positive performance has contributed significantly to the fund’s performance for the period, which supports the belief that this investment platform offers shareholders very strong risk-adjusted returns based on current opportunities and market conditions,” IPF said.
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