Heartwood Properties has recently released its annual financial results for the period ending February 2020. The 4AX listed commercial property company boasts a 30% increase in its property portfolio value.
Heartwood Properties’ nett asset value has achieved a 20% growth with a nett asset value increase per share of 9% and 20% since first listing on the exchange in 2018 despite an incredibly challenging year. Rental income has also increased by 33%.
“These results are encouraging and gives us much hope despite what market is reporting. Heartwood Properties remains a high quality business with a sustainable cash flow and a conservable managed balance sheet that has been able to withstand the short-term market uncertainty” comments John Whall, CEO of Heartwood Properties.
The company has benefitted from several successful ventures which includes the income generated from their Willow Wood Office Block D in Gauteng. This was completed at the beginning of the financial year and fully let on completion. A first-time investment made into the United Kingdom (through a co-investment into the Blythswood Quarter commercial development in Glasgow with local developers Artisan Real Estate). The successful completion of the Soleil office development in Bryanston was completed under budget by the development team and lastly, a second capital raise, which was concluded in December 2019 thereby further increasing the shareholder base of Heartwood Properties.
Going forward, Heartwood Properties will continue to focus on their core business of developing high quality sustainable buildings underpinned by solid property fundamentals to achieve superior returns for their shareholders. Key value drivers in the business are about creating strong returns by developing offices and warehouses to a much-focused tenant market, active value enhancement asset management to maintain tenant offering and exceptionally low vacancy rates, recycling of mature assets where the nett income has been maximised and, offering special dividend returns back to shareholders when assets are sold.
Whall concludes: “Although the risks associated with the Covid-19 pandemic are difficult to predict at this stage, I feel that we are in a very strong position to successfully manage through this crisis and remain on our strategic growth path.”