Investec Property Funds ups dividend
Its sister company, Investec Australia Property Fund (IAPF), has increased its distribution 9.1% to 4.15c.
IPF's new MD, Nick Riley, said R1.1bn of the R1.8bn properties the fund had bought during the year under review were acquired directly from Investec Property, including 30 Jellicoe (an office building in Rosebank, Johannesburg) and the Fleurdal Mall in Bloemfontein.
"The fund's connection with the Investec Group provides us with a strategic advantage over our peers and allows us access to quality properties and pipeline," he said.
IPF has 80 properties with a vacancy factor of 2.8%.
Riley said the fund's portfolio remained appropriately defensive in the current economic environment, with the balance sheet and interest rate risk conservatively managed.
IPF holds 18.6% of IAPF, valued at R502m. IAPF consists of 17 properties.
It is the only Australian real estate investment trust to be inward-listed on the JSE.
IAPF CEO Graeme Katz said the fund had a great result.
"Our performance is underpinned by the strength of the portfolio's real estate fundamentals, cost containment and the efficient management of capital and interest rates."
Katz said the fund was strongly acquisitive in a competitive market.
It recently bought its first properties in the Sydney area - an office block in Baulkham Hills northwest of Sydney and an industrial property in Glendenning west of the city.
Katz said he had not yet found the right property at the right price. The fund focused on the metro fringes and not on premium properties.
The fund has a weighted average lease expiry of 6.4 years and a vacancy level of 1.3%.