“The core office portfolio achieved a solid growth of 6.6 per cent, however, this was off the low base with high vacancies in 2012. The vacancy in Fourways Office Park was reduced to 21.8 per cent following its refurbishment,” said the retail, corporate and industrial property unit trust.
“The core logistics portfolio performance was negatively affected by the early renewal of 118 Brakpan Road and the re-letting of 39 Galaxy Avenue at lower rentals. This portfolio nonetheless achieved growth of 5.4 per cent. Following the refurbishment and re-letting of Thrupps Illovo Centre and Pineslopes Shopping Centre, the income from the core retail portfolio increased by 6.9 per cent.”
[DATA CPL:Capital Property Fund], which specialises in property investment and management, also reported that rental revenue increased to 2.3 billion rand for the year ending 31 December 2013 from 2.1 billion rand for the same period in 2012.
Profit before income tax increased from 2.7 billion rand in 2012 to 3.1 billion rand in 2013 and headline earnings increased from 1.7 billion rand to 2.6 billion rand.
Headline earnings per unit were up from 109.06 cents to 163.34 cents and basic earnings per unit were at 238.12 cents for 2013.
“The quality of Capital’s property portfolio places it in the position to achieve solid growth in a difficult macro-economic environment. Capital should continue to benefit from the strong growth of its listed securities, particularly the rand hedge counters,” it said.
“The forecast is based on the assumption that a stable macro-economic environment will prevail, no major corporate failures will occur and that tenants will be able to absorb the recovery of rising utility costs and rates and taxes. Budgeted rental income was based on contractual escalations and anticipated market related renewals and re-lets.”