The group also reported an increase in the value of the company’s portfolio to 1.4 billion rand up from 1.27 billion rand when the company listed in April 2014.
(READ MORE: Safari Investments to list on JSE under REIT)
“The value of the group’s investment property increased by 28.4 per cent from 2013. The increase includes the acquisition of the Heidelberg property, construction costs capitalised of 103 million and fair value adjustments of 62 million rand,” said the company.
“Most of the properties’ values are determined by the “Discounted cash flow method” and are impacted by Safari’s less than one per cent vacancy profile, 90 per cent national tenants’ occupation, positive lease expiry profile, 10 per cent average escalations and length of lease agreements.”
[DATA SAR:Safari Investments RSA Limited] also reported a 9.4 per cent increment in the net asset value per share, with shares rising to 920 cents for 2014 up from 840 cents in 2013.
The company’s current developments include the establishment of a retail node on Maunde Street in Atteridgeville to strengthen the Atlyn Centre, and a new phase for the Thabong Centre in Sebokeng, which are both under construction.
Safari said that the construction of the Swakopmund Waterfront in Namibia was expected to commence soon as all earth- and waterworks are nearly complete.
“With these new additions the portfolio is estimated to grow to two billion rand in the next financial year and to R3 billion in the next three to four years,” added the group.
The property investment company focuses on holding quality investments in property which include income generating and also vacant property holding.
The company is positive about its future growth prospects.
“The strong financial position and access to finance enables Safari to take advantage of new investment opportunities as they arise,” read the company statement.
“The strategic objective is to maximise returns on investments to provide shareholders with above average sustainable returns and growing distributions.”
The company added that Safari will continue to aim at maximising rental income streams, minimising operating expenditure without compromising the quality of services, and optimising the funding mix.