Rebosis reports profit

2011-11-07 15:18

Rebosis Property Fund (REB), the first black-managed and substantially black-held property fund to have listed on the JSE, today reported basic and diluted earnings of 172.22c per linked unit for the period from listing in May to the end of August 2011.

As a result of the listing on May 17, when R1.66 billion of fresh capital was raised, there were significant restructurings of the property portfolio, gearing against the portfolio, asset management arrangements and the capital structure.

For this reason, only the trading period for the three and a half months since listing to the financial year ended August 2011 are of relevance to Rebosis linked unit holders, it said.

Headline profit per linked unit of 27.94c was reported and a maiden distribution of 22.25c per linked unit was declared for the period.

The distribution would have been 22.95c per linked unit, but at 22.25 per linked unit it is 2.8% below the prelisting forecast of 22.91 per linked unit for the same period, mainly as a result of the delay in the transfer of Bloed Street Mall.

Rebosis chief executive Sisa Ngebulana said the fundamentals for strong distribution growth are solid.

“Forty percent of the portfolio is underpinned by secured long-term government leases, while the exposure to early stage regional shopping centres that are already trading well with a high growth rate provides for significant upside potential.

“Occupancy across the portfolio is currently 97%, considerably above the sector average and mainly as a result of long-term single tenanted office buildings. Average turnover growth at Hemingways Mall and Mdantsane City is up 19% – well above national average retail sales growth of 7%.”

The fund announced that the transfer of Bloed Street Mall was expected to be concluded by the end of November 2011 and would increase the group’s gearing ratio from 33.9% to 39.8%.

The average cost of borrowings would, however, decrease from 9.26% to 8.9% due to the payment of Bloed Street Mall from the Group’s floating facility that has lesser cost of borrowing.
 
Ngebulana said that Rebosis was well positioned for future growth.

“We remain confident in the sustainability of government leases and welcome the increased transparency in this regard. Our empowerment credentials enable us to capitalise on opportunities for the acquisition of government tenanted buildings.

“The shopping centres are trading well and are still maturing with net income guarantees in place to May 2012. In addition to pursuing yield enhancing acquisition opportunities, we have the right of first refusal on Billion Group’s R7 billion development pipeline with additional 370 000m² gross lettable area.”

The group said their target distribution range for the year ending August 2012 was between 85c and 89.3c per linked unit.

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