Delta Property Fund reports solid H1 results

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Delta Property Fund reports solid H1 results

“As a management team we’ve been very focused in the government space or sovereign underpin as such. We think we’ve got leverage over our competitors in the sector and we’ve managed to position Delta Property Fund pretty well,” Delta Property Fund’s chief executive Sandile Nomvete told CNBC Africa.

“What that has resulted in is that we have attracted a lot of interest from vendors who are looking to exit the space and they would like to partner with somebody who is a specialist in the sovereign underpin pace. It’s taken a lot of hard work behind the scenes to make sure that our asset management team is bulked up, our property managers have grown their infrastructure.”

Delta Property Fund, which released its first half results on Tuesday, reported distribution of 32.51 cents per linked unit and a property portfolio value that exceeded 4.8 billion rand.

Contractual rental income revenue increased to 218 million rand for the six months ending 31 August 2013 from 30 million rand for the same period in 2012.

Net operating profit increased from 27 million rand for the period ended 31 August 2012 to 175 million rand in 2013, and profit before taxation increased from two million rand in 2012 to 15 million rand in 2013. 

Nomvete added that the fund is satisfied with where it stands at present and it will continue its current strategy going forward.

“In the short term we’ve got quite an aggressive strategy. We have a vision to grow the fund within South Africa and the target that we had, at listing, was to reach seven billion rand by 2017. We’re currently sitting with 4.8 billion rand worth of assets already in our first year,” he said.

“Given the pace that we are able to affect transactions in South Africa, we’re probably still some way off before we start looking elsewhere for greener pastures.”