The JSE All Property Index closed at 9 725 last night.
Redefine’s FY2024 results have signaled a pivotal turning point in the industry. The Group reported a 57% increase in their headline earnings per share to 33 cents (August 2023: 21 cents) with basic earnings per share also having increased to 58.79 cents, up from 21.42 cents. With property assets under management of R99.6bn, the REIT recorded a 7.5% increase in its revenue to R10 656m (August 2023: R9 908m) with its SA REIT net asset value (NAV) per share increasing to 788.28 cents. Redefine reported an overall improvement in its SA renewal reversions, now at -5.9% from -6.7% in FY2023, primarily driven by its retail and industrial portfolios. Its Board declared a dividend of 22.25 cents per share for the six-month period, representing a 90% dividend payout ratio. The Group’s LTV currently sits at 42.3%.
Construction project delays and cancellations are on the rise in SA, according to Industry Insight’s October 2024 Construction Monitor, with over 240 civil projects postponed during the first eight months of this year. Infrastructure bottlenecks, municipal mismanagement, and logistical inefficiencies (especially in major ports) are adding to the strain on economic productivity. However, there are some signs of optimism. Public investment has emerged as a potential growth driver, particularly in the Western Cape, Gauteng, and KZN - a critical counterbalance to the decline in private sector approvals with building contracts awarded rising by 57% in 2024.
Collins Property Group (formerly Tradehold Ltd.) is in various sales negotiations to dispose of most of its Namibian portfolio to seek growth opportunities offshore. The REIT posted its interim results for the six months ended August 2024, telling Property Wheel that it anticipates the sale of the balance of its Namibian assets to be finalised by the beginning of 2025. As at the end of the reporting period, its total assets amount to R12.1bn with its portfolio split across SA (83%), Namibia (6%), in Europe – Austria and The Netherlands (7%) and the rest of Africa (4%) – in monetary terms. Its LTV currently sits at 50%.
A 2006 – 2021 Lightstone data assessment has revealed that 16% of sectional title properties within traditional residential complexes were owned by SA’s private property investors. Investor interest in freehold properties in estates waned with attention shifted to sectional title units within estates.
Exemplar REITail has taken transfer of the 16 592m2 community centre Eerste Rivier Mall in the Western Cape – the first asset in its portfolio not developed by McCormick Property Development or the REIT. The latest R282m acquisition sees the expansion of its footprint to six provinces and 27 retail centres with a further eight under management. The Group also posted its interim results for the six months ended August 2024, reporting a 9.79% increase in its revenue to R638 471m (August 2023: R581 523m) and recording increases in both its headline earnings per share and earnings per share of 28.48% to 62.47 cents and 3.03% to 111.9 cents, respectively. With a 6.43% increase in its NAV per share to R15.26 (August 2023: R14.34), Exemplar’s Board resolved to declare an interim dividend of 70.25 cps for the reporting period, a 9.3% increase compared to 64.27 cps in August 2023.
Homeowners in Brackenfell in Cape Town’s Northern Suburbs are experiencing above-average capital growth, driven by expansion, infrastructure improvements and proximity to key amenities. While both freehold and sectional title assets have witnessed growth in prices, freehold properties have seen the median price more than double over the past decade with the average home price currently sitting at around R2.7m according to Pam Golding Properties. Demand for homes in secure estates have increased, particularly in the R2.5m to R4.5m price range, with potential for new complexes in the suburb, as well as new residential estates, particularly in Brackenfell South.
Only Realty’s development division has achieved a significant milestone by selling 100 units within just weeks of launching WCB Property Developers’ Monarch in Tygervalley, Cape Town. 40 units were sold during the launch weekend, highlighting the growing appeal of the city’s northern suburbs. Monarch’s studio apartments, which started at R999 000 in Phase 1, are now priced from R1.1m for Phase 2 with sales launching today, Friday the 8th of November.
Congratulations to the 2024 class of SAPOA’s flagship Property Development Programme (PDP)! In its 53rd year, the PDP, sponsored by Growthpoint Properties, has been a longstanding partnership between SAPOA and UCT’s Graduate Business School, having trained approximately 2 800 professionals over the years, including SAPOA’s CEO Neil Gopal (1998) and SAPOA’s President and MD of Vukile Property Fund, Itumeleng Mothibeli (2014). Designed to sharpen skills, broaden knowledge, and to inspire leadership, 2024’s cohort, comprised 40 individuals including six international students from Saudi Arabia, Botswana, Nigeria, and Zimbabwe while also marking the highest number of female participants in PDP history. Property Wheel recently attended the graduates’ dinner held in Cape Town.
