The diversified real estate investment fund saw revenue decrease from 1.22 billion rand for the year ended 31 December 2012 to 1.18 billion rand for the same period in 2013.
“At the beginning of 2013 the fund presented a four pillar strategy to turn around the performance of the fund and to provide a base from which the fund would be able to deliver sustainable distribution growth well into the future,” [DATA SAC:SA Corporate Real Estate Fund] said.
“The board is pleased to report that during the year under review actions were executed to address each of the four pillars of the strategy and as a consequence the fund achieved top quartile performance in the sector in 2013 and is appropriately positioned for future growth.”
Operating income decreased from 623 million rand in 2012 to 615 million rand in 2013. Income before taxation however, increased from 786 million rand to 1.01 billion rand.
Headline earnings increased from 559 million rand in the 2012 period to 657 million rand in 2013.
“In an environment of market volatility and upward pressure on the cost of capital and yields, the fund is focusing on unlocking underperformance in its retail portfolio and robust tenant retention in its industrial portfolio. In addition the fund is exploring investment opportunities that will be yield and growth enhancing,” it said.
“The board is pleased with the turnaround of the fund in 2013 and is confident that it is now on a firm footing to deliver distribution growth at least on par with the sector average for listed entities invested in South African property.”
SA Corporate Real Estate Fund also announced on Monday, the conclusion of a conditional agreement to acquire the entire issued share capital of Afhco from the shareholders of the Afhco group, through SA Corporate’s wholly-owned subsidiary, SA Retail Properties Proprietary Limited.
“The proposed transaction offers SA Corporate the opportunity to acquire an established platform and experienced management team in the residential property sector. The Afhco platform is arguably the most attractive Johannesburg Inner City CBD residential portfolio offering scale, quality and diversity,” SA Corporate said.