LISTED
CEO: Mark Kaplan
Mark holds a BBusSc, Finance( Hons). He is the co-founder and Chief Executive Officer of Arrowhead Properties Ltd, an Executive Director of Indluplace Properties Ltd and the CEO of Gemgrow Properties Ltd, all of which are listed on the JSE. He was previously involved in running a large residential portfolio focused on affordable and student housing.
Results for six months ended 31 March 2018
• Total revenue for the interim period increased to R1.233 billion( 2017: R1.059 billion), net operating profit rose to R796.5 million( 2017: R674.5 million),
• Profit for the year attributable to equity shareholders of Arrowhead fell to R117.5 million( 2017: R709.9 million), while headline earnings per Arrowhead ordinary shares dropped to 11.58 cents per share( 2017: 68.70 cents per share).
• Vacancies have been reduced to 10.63 %( from 12.10 %) and Arrowhead expects it’ s vacancy to be under 9 % by the end of the financial year.
• At 31 March 2018 Arrowhead owned 50 commercial properties directly, 139 commercial properties indirectly through Gemgrow and 171 residential properties comprising 9 662 units, indirectly through Indluplace. At 30 September 2017, Arrowhead owned 51 commercial properties directly, 129 commercial properties indirectly through Gemgrow and 125 residential properties indirectly through Indluplace.
• Arrowhead’ s direct property portfolio comprises 56.7 % by value of retail properties, 35.4 % of office buildings and 7.9 % of industrial buildings.
• The gross expense to income ratio has remained stable at 38 %. The net expense to income ratio remained at 16 % year-on-year.
• Investment property has increased from R13.0 billion at 30 September 2017 to R15.0 billion at 31 March 2018. The increase was attributable to acquisitions and additions of R2.0 billion.
• LTV of 36.8 % for the group, up from 27.8 % 31 March 2017.
RDI REIT
About the fund
RDI( Real Estate Diversified Income) is a FTSE 250 UK Real Estate Investment Trust( UK-REIT).
The Company owns properties independently valued at £ 1.6bn in the United Kingdom and Germany, Europe’ s two largest, liquid and transparent property markets.
RDI invests in assets with strong property fundamentals spread across UK offices( including London serviced offices), UK logistics, UK shopping centres, UK retail parks, UK hotels and German retail.
RDI holds a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange and is included within the FTSE 250, EPRA, GPR, JSE All Property and JSE Tradeable Property indices.
CEO: Mike Watters
Mike is a qualified engineer with a BSc Eng( Civil) Degree and an MBA. He has over 27 years’ experience in the investment banking and real estate industries. He has held directorship of some of South Africa’ s top rated listed property funds including Sycom Property Fund and Hyprop Investments Limited as well as the Sapphire Retail Fund in the UK.
Results for six months ended 28 February 2018
• Gross rental income of £ 55.5m
• Dividend yields on NAV at 6.3 %
• LTV of 48 %
• Disposal of 3 regional offices in City Points, Leeds and other, for £ 19.3m; a 4.3 % premium.
• Increased holding in IHL from 17.2 % to 74.1 %. Portfolio of nine hotels with an implied NIY of 6.9 %
• 80 % Holding in four London serviced offices valued at £ 161.7m.
• Market value of £ 1.65bn- 33 % commercial( offices and logistics); 45 % retail; 22 % hotels.
• Geographical split: 85 % UK and 15 % Germany.
• 97.3 % occupancy
• Over 500 tenants, with no single tenant > 4 %
42 JUNE / JULY 2018 SA Real Estate Investor Magazine