An accelerating start for Accelerate in debut company results

by Trust Matsilele 0

An accelerating start for Accelerate in debut company results

The company’s headline earnings per share (HEPS) were reported to be at 51 cents which was over 100 per cent more than the previous forecast of 19 cents.

Accelerate’s projected annualised yield of 9.71 per cent was above the overall property sector yield.

The property company focusing on investing in direct real estate maintained its local blue-chip tenants and has been approached by international retail brands, which is encouraging for revenue streams.

(WATCH VIDEO: Accelerate Property Fund Lists on the JSE)

The company noted that the interest rate hike earlier in 2014 increased pressure on consumers to service debt, adding that there may be further interest rate increases.

“Coupled with increasing inflation rates, this will result in greater pressure on consumer spending. These negative factors will also place the retail sector under pressure,” said the company.

[DATA APF:Accelerate Property Fund Limited] added that the listed property sector has seen a wave of new listings since 2011.

“This was as a result of various factors, including the demand for higher yielding investments in a low interest rate environment, the introduction of REIT, unlisted portfolios attempting to benefit from cheaper listed equity capital for expansion and access to growing debt capital markets, among others.”

Accelerate earned a gross rental income of 205 million rand for the trading period, which comprises net rentals of 160,7 million rand and 44 million rand of operating expense recoveries.

The property company is upbeat about the future even though the economic outlook seems weak.

“Accelerate is well positioned to create shareholder value by being a participant in the major development in the Fourways area, making the most of opportunities to acquire properties, and ensuring properties are well managed and maintained.”

(READ MORE: Accelerate Property Fund lists on the JSE)

Accelerate Property Fund Limited listed on the Johannesburg Stock Exchange last December with a market capitalisation of 3.11 billion rand.

Upon listing, Tito Mboweni, the non-executive chairman of Accelerate Property Fund, said as a public listed company, Accelerate  was better positioned to execute its value creation and growth strategies.