The South African property investment fund saw revenue increase to 117 million rand in 2014 from 85 million rand for the five months ended 30 November 2013.
(READ MORE: Tower Property reports 85 million rand revenue)
“Tower performed well in the six months ended 30 November 2014 in an increasingly difficult trading environment,” it said.
“The investment strategy is to expand the portfolio by targeting well located, mainly medium-sized properties with strong cash flows and to ensure a diversified sectoral and geographic portfolio.”
Tower Property added that its longer term objective is for the portfolio to comprise approximately 50 per cent in retail space, followed by office at 30 per cent and industrial at 20 per cent.
“During the period two properties totalling 122 million rand were acquired. Active asset management of the portfolio has continued to reduce operating costs,” the company said.
“Greening initiatives undertaken include lighting retrofits at Cape Quarter and the De Ville Shopping Centre, and a large solar installation at Cape Quarter which is predicted to yield a 17 per cent return.”
According to the company, this solar project will ensure that most of the roof space is being utilised to generate energy.
“This is a strategically important programme given the country’s electricity supply constraints and the expected tariff increases from Eskom,” Tower Property said.
“Savings at Cape Quarter have exceeded predictions with 850,000 rand being saved per annum as a result of lighting changes. The electricity demand of the property has been reduced by 13 per cent.”
(READ MORE: Tower saves R1 mln in op costs at Cape Quarter)
The property fund saw its net property income for the 2014 period increase to 103 million rand from 75 million rand for the previous corresponding period, and a profit before taxation of 98 million rand from a loss of 31 million rand.
Its operating profit grew by 37 per cent and its basic and diluted earnings per share, of the weighted average shares in issue, increased to 69 cents in 2014.
“Management continues to focus on the acquisition of strategic properties to ensure the sustainability of the fund and to enhance returns for investors,” said [DATA TWR:Tower Property].
“The directors remain committed to meeting the distribution forecast of 86.6 cents for the 2015 financial year, as published in the company’s pre-listing statement in July 2013.”