Safari Investments RSA reports 13.3% increase in Distribution per share

Safari Investments RSA, the JSE property REIT, has lifted its distribution by 13.3% to 34 cents per share on a 100% distribution payout ratio for the six months to December 2024, up from 30 cents paid out in the previous six months.

Operating profit for the company that aims to grow a portfolio of premium retail assets through investing in convenience or small regional shopping centers and potential ancillary assets in South Africa increased by 9% to R163.44 million.

Occupancy remained strong at 97.9% (2023: 97.8%) based on a vacancy factor of only 2.1% (2023: 2.2%). The group owns eight retail centers that are located in high-footfall areas and hold a dominant presence in their regions. Centers are largely underpinned by national tenants with long-term leases. Safari also owns bulk reserves and vacant land for future development.

Investment property increased by 10.7% The net asset value per share increased by 14.7% to R10.55 per share. The group is in the process of exiting two investments, Platz am Meer Centre and Mnandi Shopping Centre, as part of a disposal of non-core assets.

Loan-to-value stood at 33%, lower than 36% at the previous comparable period.

The board said in the results they remain confident that the group would perform in line with initial guidance of a total distribution per share ranging from 66 cents to 69 cents, provided that there is no material deterioration in the economic environment in which Safari operates.

For the 15-month period to June 30, 2024, Safari Investments declared a distribution of 78 cents per share. Due to Safari and its subsidiaries changing their year-ends from March 31 to June 30, effective from June 30, 2024, the prior comparative period refers to the six months ended September 30, 2023.

Safari owns 13 000 square meters of land in Pretoria’s Lynnwood precinct. A mixed-use development is in the planning phase, alongside a rezoning application.

“There is strong interest from major national tenants, with letters of intent already received from leading food anchor retailers. This reinforces the site’s potential as a key commercial destination,” the company said.

Safari’s share price closed 0.9% higher at R6.75 on Friday. This marks a 19.6% increase compared to the same period last year.

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