Induplace soundly on growth path

Indluplace Properties Limited today announced their Interim Results for the six months ended 31 March 2016. The company that listed in June 2015 on the Main Board of the JSE pays quarterly dividends and declared a dividend of 23,07 cents per share for the quarter to end March 2016. This brings the total dividend for the six months to 46,00 cents per share; in line with guidance.

At 31 March 2015, Indluplace was a wholly-owned subsidiary of Arrowhead Properties Limited with a property portfolio valued at R785 million. Since listing with a portfolio worth about R1,6 billion Indluplace acquired further properties of about R500 million.

Terry Kaplan, FD of Indluplace commented: “We are excited about the growth in Indluplace and the opportunities we believe the current market conditions will present once acquisition prices adjust in line with the current financial climate.”

During the reporting period the Prime and Connaught portfolios were acquired for about R500 million, increasing the number of residential properties within the portfolio from 95 to 109; resulting in portfolio growth of 36% in the number of units owned. The Connaught portfolio consists of nine high-rise buildings in the inner city of Johannesburg, comprising 1 181 units. The Prime portfolio consists of three suburban townhouse complexes located in Florida, Springs and Fourways comprising 166 units. Indluplace owned 5 037 residential units at the end of March 2016.

“We are pleased with the performance of the existing portfolio, especially the newly acquired properties, and have made good progress with growing a diverse portfolio across building types and income levels. We continue to focus on finding yield accretive, quality residential portfolios that provide income from the date of acquisition,” said Carel de Wit, CEO of Indluplace.

The letting of complexes handed back at Honey Park is progressing well. Indluplace’s average vacancies over the six months was just over 3% (excluding Honey Park) while maintaining low arrears and bad debts figures.

“Indluplace remains ungeared and we are well positioned in the current uncertain macro-economic environment to take advantage of opportunities expected to arise in a rising interest rate environment where residential rental properties should become more attractive,” said Terry Kaplan, FD of Indluplace.

“Indluplace, being the only focussed residential REIT listed on the JSE, provides the South African investor with diversification to commercial property. We are on-track to achieve a full year dividend of 92,5 cents per share; over 10% above our listing forecast,” concluded Carel de Wit, CEO of Indluplace.