News
Posted on 2022-09-16
The JSE All Property Index closed at 7 563 last night.
Attacq Limited
published its financial results for the year ended June 2022, resuming
dividend payments of 50 cents per share, representing a pay-out ratio of
80%. Lower interest rate costs, higher rental collections, and the
receipt of a dividend from its investment in MAS (R68.5m) contributed to
an increase in its total distributable income per share of 34.2% (to
62.8 cents). The REIT’s interest-bearing borrowings reduced by 18.7% to
R8.3bn (2021: R10.2bn) while its net asset value (NAV) grew by 11% to
R17.49 per share (2021: R15.75). Its loan-to-value (LTV) improved from
43.3% to 37.2% and its interest cover was also bettered from 1.41 times
to 1.58 times. Its share price has increased by 3% over the past year.
The City of Joburg has relaunched its Property Release Programme
with 11 properties allocated for phased mixed-use development by the
private sector. More than 500 properties, abandoned, open land parcels
and/or previously hijacked buildings, have been identified across the
city for student accommodation, retail, affordable housing, and precinct
development.
Growthpoint Properties anticipates the V&A Waterfront to achieve “higher than pre-Covid earnings”
during FY2023. Its tourism numbers were up 32.3% during FY2022 and the
REIT’s 50% interest in the tourism landmark, with its share of property
assets valued at R9bn, recorded a 52% increase in net property income.
In the quarter to June 2022, the V&A’s retail sales recovered to 14%
above pre-Covid levels with its retail vacancies below 1%. The group
delivered a 5.1% increase in distributable income per share of 155.6
cents with an increase in its total dividend per share of 8.4% to 128.4
cents per share. Its LTV reduced from 40% to 37.9%.
A sharp rise in architectural activity during Q3 2022, particularly in
areas closer to the completion and/or approval of building plans,
suggests that building activity
should improve in the coming quarters, according to the FNB/BER
Building Confidence Index. While the profession has reported rising
activity over the past few quarters, little flowed from their ‘business
pipelines’ to other workstreams – until now. Architect confidence rose
to 50 from 31 in Q2 2022.
The 10th edition of the CCID’s ‘State of Cape Town Central City’ Report – A Year in Review’
has highlighted sustained confidence in the development and business
investment potential of the Mother City’s CBD with new property
investment worth R5.7bn recorded during 2021. 28 developments were
registered which included 13 completed projects/redevelopments worth
R2bn. Of the 13 completed developments, 5 were hotels/aparthotels which
have already opened. The 12 projects that were under construction were
worth R1.7bn with 3 projects in the planning phase worth R1.5bn. The
most significant indicator of confidence was the overall increase in the
official value of all property in the CBD by R12.2bn from 2016/2017 to
R43.8bn in 2018/2019 according to the City of Cape Town’s property
valuations.
