Investec Property Fund final distrib. 49.29c

Following an initial distribution of 43.73 cents per linked unit (cpu) Investec Property Fund (IPF) has declared a final distribution of 49.29 cents cpu for the year ended 31 March 2012.

This brings the total distribution for the year to 93.02 cpu.

"This exceeded our initial estimate of 89.94 cpu by approximately 3.4%," the fund commented.

It added that as the fund was dormant before listing and only took effective control of the initial property portfolio from the beginning of the financial year under review, no comparative results are presented.

The fund listed in the 'Real Estate Holdings and Development' sector of the JSE on 14 April 2011.

At listing the initial property portfolio of the fund comprised 29 properties in South Africa with a total gross lettable area (GLA) of 368 530mSquared acquired for a total purchase consideration of R1.697 billion, which were independently valued at R1.771 billion.

"A key objective at this stage of our life cycle is to grow our asset base to maximise economies of scale, create a portfolio effect to mitigate risk and to position the Fund to effectively compete for new acquisition opportunities.

"Consequently a key focus area with dedicated people is to continually seek investment opportunities to expand the portfolio while continuing to professionally asset manage the property portfolio, thus optimising returns to our linked unitholders over time," the fund said on Thursday.

Although not all included in the results from a timing perspective, the fund has during its first year increased its asset base by R490 million (28.9% increase from the acquired cost of the initial portfolio) by the acquisition of five high-quality properties.

"Our strategic focus expressed from the outset is that we are a property-orientated business and that aggressive acquisitions may be made from time to time if thought to have long-term benefits. Also, we look to acquire good real estate rather than look to balance by sector or geography, while acknowledging that our portfolio at listing was underweight retail. Our acquisitions have been both financially enhancing and enhancing to our portfolio in general as well as to our retail portfolio.

"Of the five acquisitions, three were effective in the current year, adding R225.9 million to the value of the property portfolio. Taking into account the current year's revaluation of the property portfolio of R139.2 million, and capital expenditure of R3.8 million, this brings the total property portfolio at year-end to 32 properties with a total GLA of 406,706mSquared and a value of R2.065 billion - a total increase in assets of 21.7%.

"Following transfer of the two remaining acquisitions of R264.1 million, which is anticipated to be in the first quarter of the next financial year, the total property portfolio will comprise 34 properties with a total GLA of 431 447mSquared and a value of R2.33 billion - a total increase in assets of 37.3%," the fun d said.

"At listing our linked units were initially placed at a price of R9.50 per linked unit and closed at year-end at R11.70 per unit. Factoring in the interim distribution of 43.73 cents per unit (cpu), linked unitholders who invested at the listing have achieved a total return of nearly 28%," the fund added.