Heriot REIT forecasts dividend share growth for its financial yearend

Heriot’s 50% co-owned Dawn facility in Johannesburg.
Heriot’s 50% co-owned Dawn facility in Johannesburg.

Property holding and investment company, Heriot REIT, is confident that its retail portfolio, coupled with its high-quality tenant base, will deliver growth of 6% to 8% in its dividend share for its financial year ended on the 30th of June 2021.

The company’s forecast has been prepared on the assumption that its property income is based on contractual rental escalations and market-related renewals with adequate allowance made for vacancies and rent reversion; no further rental concessions will be granted to tenants due to harsher lockdown restrictions that may be imposed because of a potential fourth wave of Covid-19 infections; no further major corporate or tenant failures occur and, interest rates remain unchanged.

The REIT’s net asset value (NAV) per share reflected a 3.2% increase (1 142.55 in cents) compared to 2020’s reported figures of 1 107.27 with its headline earnings per share increasing by 17.6% to 87.35 cents (FY2020: 74.27 cents).

With a portfolio valued at R4.647 billion, its focus on retail areas in non-metro areas drives its primary objective to develop and/or invest in yield-enhancing assets in South Africa.

Heriot says its focus will remain on the retention of its tenants and reducing vacancies while it continues to explore opportunities to grow its asset base.

The board has declared a final gross cash dividend of 46.88 cents per share out of the company’s distributable income for the year ended 30th June 2021.