Fairvest exceeds annual guidance with 11.2% distribution growth

FAIRVEST has exceeded its annual guidance, reporting 11.2% growth in its distributions per B share after strong rental income growth and lower vacancies - the distribution growth is certainly at the top end of growth among South Africa's REIT’s, at this time.

- EDWARD WEST

FAIRVEST CEO Darren Wilder

(SUPPLIED)

In financial results for the year to September 30, the largest South Africa focused property fund on the JSE reported 11.2% growth in distribution per B share to 48.15 cents, exceeding the guidance of between 8% and 10%. The distribution per A share came to 142.57 cents. A 100% payout ratio was maintained.

CEO Darren Wilder said in an interview the results demonstrate “disciplined execution of a clear strategy, coupled with a strong operating platform that will continue to deliver growth in the future." The results of strategies adopted put in place three years ago were now bearing fruit, he said.

Vacancies reduced to 4.1% from 4.3% and like-for-like net property income growth came to 5.8%. Positive rental reversions improved to 4.8% from 3.6%. Letting activity involved 537 new deals and 504 renewals, for an overall tenant retention rate of 83%. The average lease escalation held steady at 6.7%, while the average lease term extended to 30.1 months.