JSE-listed residential real estate investment trust (Reit) Indluplace on Wednesday posted an increase in its distributable income for the half-year ended March 31, to R117-million, up from the prior year’s R110-million.
The acquisition of Garden Views, a 64-unit complex in Randburg, in Gauteng, for R25-million in December 2016, has contributed to this growth. The company will continue to roll out its acquisition strategy in the second half of the year.
CEO Carel de Wit noted that there were ample local opportunities for the company to expand its portfolio.
De Wit indicated that Indluplace would remain focused on South Africa, rather than seeking offshore opportunities, with the Reit currently having a deal at the Competition Commission for a property in Bloemfontein. “We are looking at areas where there is proven long-term demand,” he pointed out.
However, De Wit noted that the company was not unperturbed by the current macroeconomic environment and uncertainty, but that Indluplace’s balance sheet was strengthened by it main-taining its cost-to-income ratio.
De Wit said that the company was on track to meet its target of delivering dividend growth of between 5.5% and 6.5% for the full year to September 30. For the quarter ended March, Indluplace declared a dividend of 24.71c a share.
Indluplace’s finance income has increased from R8.4-million in 2016 to R11.4-million for the six months ended March this year.
