Arrowhead targeting residential portfolio growth


“Residential property fits perfectly into the Arrowhead model – enhancing acquisitions are available, [it’s] lower risk because of the greater number of small tenants [and] Arrowhead has the capability and experience to assume the increased management requirements,” said the property company.

“Arrowhead’s target is a two billion rand residential portfolio within the next 18 months. A strong demand for residential stock, within the listed sector, will provide developers of new residential stock with a suitable exit strategy in order to develop further stock.”

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The South African Real Estate Investment Trust (REIT) also reported a total revenue increase for the six months ending 31 March 2014.

Revenue increased from 203 million rand for the six months ended 31 March 2013 to 295 million rand for the 2014 period.

“Revenue has increased during the period as the full effect of the acquisitions concluded during the previous financial year, together with the partial impact of acquisitions concluded during this period and annual escalations to the existing leases, are taken into account,” [DATA AWB:Arrowhead Properties] said. 

Rental income grew to 270 million rand in 2014 from 193 million rand in 2013 and net operating profit increased to 191 million rand from 130 million rand.

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Profit before taxation was up from 20 million rand in 2013 to 51 million rand in 2014, basic and diluted earnings per A linked unit increased to 48.64 cents from 37.85 cents, and basic and diluted earnings per B linked unit grew to 48.64 cents from 34.25 cents.

“The distribution for the six months ending 31 March 2014 is 13.49 per cent higher than the comparable six months ended 31 March 2013,” the company said.

“Based on the acquisitions concluded to date and the performance of the existing portfolio, management expects to achieve a distribution per combined A and B linked unit for the year ended 30 September 2014 of 16.8 per cent growth on the distribution to 30 September 2013.”