“This has been a busy and very positive year for the fund. A number of fundamental changes have provided us with a solid platform from which to grow our asset base and deliver sustainable, superior earnings for our shareholders,” the fund said.
“Despite strong growth, the fund has retained its tight control of the assets and all acquisitions have enhanced the portfolio quality and the sustainability of its income.”
(READ MORE: Vunani reports 9% revenue yield for FY13)
Texton, formerly Vunani Property Investment Fund, reported a marked increase in its acquisition activity, from 9.9 per cent to 30 June 2013 to 40.4 per cent in 2014.
The company successfully changed its name following the cession and assignment of an asset management agreement to Texton Property Investments Proprietary.
“The purchase of the management company by a consortium has invigorated the fund with the injection of considerable property skills and deal making ability. The underlying portfolio has proven to be an exceptionally stable platform and performed well,” [DATA VPF:Texton] said.
“Going forward both the existing portfolio and our growth path will benefit from the expertise within the Texton group. We will continue to appoint highly experienced executives with property expertise to ensure we continue the fund’s focus on tight, hands-on management.”
The fund also reported that revenue increased to 273 million rand for the year ending 30 June 2014 from 229 million rand for the same period in 2013.
Net property income grew 18.8 per cent from 154 million rand in 2013 to 184 million rand in 2014 and profit before income tax increased to 195 million rand from 60 million rand.
Basic and diluted earnings per share increased to 123.60 cents in 2014 from 120.49 cents in 2013 and net asset value per share was up 15.4 per cent from 861.9 cents to 993.89 cents.
(READ MORE: Vunani Property sees upsurge despite stagnant economy)
“An aspect of our tenant retention strategy has involved evolving into a specialist in refurbishments and green projects. We continue to assess all the buildings in our portfolio and will schedule green refurbishments provided they deliver enhanced returns to our shareholders and tenants,” said Texton.
“The board is also applying itself to opportunities outside of South Africa. As with any acquisition, a clear, well defined and thought out strategy is mandatory. We will continue to focus on our strategy of growing the fund with yield enhancing assets without compromising on quality.”