Tower Property reports 85 million rand revenue - CNBC Africa

Tower Property reports 85 million rand revenue

Earnings

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Tower Property Fund reported that its 'greening' strategy is gaining traction. PHOTO: Getty Images

The retail, industrial and office investment fund, which has successfully listed as the first new Real Estate Investment Trust (REIT) on the Johannesburg Stock Exchange, also reported its net property income at 75 million rand for the interim period.  

“During the period the fund has taken on the management of the 27 properties, reduced operating costs across the portfolio and engaged with all strategic tenants. The fund is managed by part of the highly experienced property team which was previously responsible for listing and managing Paramount Property Fund,” [DATA TWR:Tower Property Fund] said.

“Tower has produced a pleasing operational and financial performance, generating headline earnings of R35.3 million for the six months ended 30 November 2013. The directors have declared a maiden distribution of 33 cents per share for the period, exceeding the forecast of 31.4 cents contained in the group's pre-listing statement.”

The fund’s net operating profit was at 70 million rand, it also reported an annualised income return of 9.6 per cent and its basic and diluted headline earnings per share, from its weighted average shares in issue, was at 42.5 cents for the six-month period.

“Management continues to focus on the acquisition of strategic properties to ensure the sustainability of the fund and to enhance returns for investors. Tower will continue to upgrade and add value to buildings over time, as well as seeking 'greenable' properties as the portfolio is expanded,” said the fund.

“Management will look to further fix the fund's debt exposure on a sustainable basis. The directors remain committed to meeting the earnings and dividend forecasts for the 2014 financial year, as detailed in the group's pre-listing statement.”

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