Heartwood Properties has published its audited financial results for the year ended February 2022, declaring its first dividend, a R2 million payout to shareholders, since listing on the Cape Town Stock Exchange in March 2018.
With a portfolio valued at R279 million, Heartwood focuses on the urban logistics sector, being warehouse and retail warehousing in the Western Cape and Gauteng. It partners with well-established entrepreneurs who, in return for signing a ten-year lease on a property, receives a percentage shareholding, making them part owner. During the process, the clients also receive a professional and expert commercial property developer who can take the pressure of them in terms of implementation.
Since its listing, the company has grown its share portfolio by 130% from R121 million to R279 million. Its net asset value has grown by 68% with its share price up to R1.00 from its listing price of 59 cents in 2018. Its loan-to-value currently sits at 48%.
“This consistent upward growth is very encouraging and shows investor confidence in this market is up. It also proves our innovative tenant shareholder offering is a favoured strategy for clients wanting to own their own premises. It’s also the first time, since listing, that we are paying our shareholders dividends. We have a policy of selling some assets after a four to five-year initial period has been implemented, which then allows us to pay dividends”, said John Whall, CEO of Heartwood Properties.
The company has an extremely robust development pipeline consisting mainly of urban logistics assets situated in Cape Town, many of these are tenant shareholder joint ventures with long leases.
Some of the latest developments include:
- A completed new BuildIt in Somerset West was completed during the year and consists of 2600m2 of prime stand-alone retail space with a ten-year lease.
- A new Alveo Water warehouse in Cape Town is currently under construction, with a ten-year lease.
- A new warehouse for RB & Son Logistics in Stellenbosch Arterial to begin construction in January 2023, also with a ten-year lease.
- The Sunvlei office development is a first of its kind, due to start in the final quarter of 2022, this is an exciting new concept of co-working space combined with traditional office space. This concept will be rolled out to various suitable sites.
- Warehouse and showrooms development in Quartz Hill, Malibongwe Drive.
“We are fortunate and grateful to have such a vast selection of new developments in the pipeline and will be soon looking to raise more capital to help fund these new builds. As always, our core focus remains on creating wealth for all, being our shareholders, joint venture partners, tenants, professionals, and employees”, concluded Whall.