Shaun Fourie, Head of Asset Management and Operations of Atlantic Leaf from London.
Atlantic Leaf Properties Ltd, the Mauritian domiciled property company with secondary listing on the AltX in Johannesburg, released its full year results on the 12th of April 2016, announcing a weighted average earnings per share for the year of 8.7 pence per share – which equates to a yield on Net Asset Value Per Share (“NAVPS”) of 8.2% (on an historic basis) – and a final dividend of 4 pence per share.
The company was recently in the news, subsequent to raising R1.14bn to expand its property portfolio.
Total property assets at year‐end stood at £196 million (2015: £13.6 million) and have grown further since then to £264 million as a result of the acquisition of an additional 4 properties since year‐end. The total gross let-table area of the portfolio is 335,000 m2, across 54 properties.
“It is fair to say that the business looks very different from 12 months ago.” says Shaun Fourie, Head of Asset Management and Operations from London. “What is particularly pleasing is the fact that we are building credibility as a team who can execute transactions quickly and efficiently, which in turn means that we are presented with an increasing range of opportunities for consideration.”
Despite the rapid growth, it is notable that the management team has been very selective in terms of the acquisitions. Atlantic Leaf’s portfolio consists of quality assets in key secondary nodes in the United Kingdom, each of which have long‐term, single‐tenant leases with blue chip occupiers, with an average yield of 7.2% and a weighted average unexpired lease term of approximately 13 years.
Atlantic Leaf’s average cost of debt is 3.4% which places the portfolio yield, which is generated in a stable, low inflationary environment with solid growth prospects, in context. The company also uses interest rate hedges to protect itself against possible interest rate rises and has now hedged about 75% of its total debt.
Looking forward, Atlantic Leaf’s management have previously stated that they are targeting a JSE main board listing in 2016, and according to chief executive, Paul Leaf-Wright, that event is on track for the next quarter.
“Listing on the main board of the JSE is just one of the key strategic initiatives we have planned for the next year” Leaf-Wright continues.
“We will also look to do further capital raises over the next 12 months and deploy this capital into additional properties for our portfolio. Simultaneously we will aim to create extra value through the active management of our current portfolio, ensuring that we generate the maximum return for our shareholders.”
Operationally Atlantic Leaf is targeting a 21% increase in their distribution in 2016/17, to 8.5 pence per share from the 7 pence in 2015/16.
“We are pleased with the performance over the last 12 months, and with the targets we have set for the growth of the business and distributions”.” Leaf-Wright concludes.