Africa-focused property company Grit reports on its first year since listing – Grit Real Estate Income Group (GR1T) has delivered its first full report for the twelve month period to 30 June 2018.
Performance
The NAV per share of the company increased by 5.2% year-on-year . Its EPRA NAV return increased by 6.0% . This increase in NAV is attributable to strong portfolio growth, with gains from hospitality (hotels, etc.) assets equating to US$7.5 million, in Anfa Place US$1.7 million and the Zambian retail centres amounting to US$6.6 million.
While net operating income per building has increased in line with escalations, valuation increases on the existing portfolio are being hampered by the macroeconomic climate, particularly in Mozambique. The progress made on the ENI’s capital investment programme in the Rovuma Basin continues to be positive news for the Mozambique economy. Management believe that this will provide the long awaited impetus for sustainable economic growth in Mozambique with the group well positioned to take advantage of this growth.
Dividend
Total investment in income generating assets has increased from US$488.5 million in 2017 to US$642.3 million in 2018.
The strong financial performance and distributable earnings growth has allowed the group to declare a final distribution of 6.12 USD cents per share, taking the full year distribution to 12.19 USD cents per share (2017: 12.07 USD cents per share). This represents annual growth of 1%. The group is targeting an annual dividend growth of 3% – 5% in 2019.
Financial highlights
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Full year dividend per share increased to US$12.19 cps (2017: US$12.07 cps) |
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European Public Real Estate Association (EPRA) net asset value (NAV) per share up 6.0% to US$145.7cps (2017: US$137.4cps) |
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Strong growth in adjusted EPRA earnings amounting to US$22.8 million up from US$5.6 million in 2017 |
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Adjusted EPRA earnings per share up 122.8% to US$11.32cps (2017: US$5.08 cps) |
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Loan-to-value ratio of 43% post year end and 51.4% as at 30 June (2017: 42.8%) |
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Net property income increased 52.4% year-on-year to US$25.7m (2017: US$16.8m) |
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Adjusted administration cost to income producing asset value percentage equates to 1.3% (2017: 1.4%) |
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Successful admission to the Main Market of the London Stock Exchange on 31 July 2018, raising gross capital amounting to US$132.2 million |
Portfolio highlights
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Property portfolio now comprises a total of 22 investments |
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Weighted Average Lease Expiry (WALE) increased 8.8% to 7.4 years (2017: 6.8 years) |
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Weighted Average Annual Rent Escalations at 3.1% (2017: 3.5%) |
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Weighted Average Net Rental per m² per month amounts to US$18.2 (2017: US$19.3) |
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Gross Lettable Area (“GLA”) equates to 308 157m2 (2017: 142 899 m2) |
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EPRA Operating Cost to Income ratio (including associates) of 15.6% (2017: 27.5%) |
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EPRA Portfolio occupancy rate at 96.7% (2017: 96.9%) |
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Weighted Average Cost of Debt at 5.75% (2017: 5.78%) |
Outlook from Bronwyn Corbett, CEO
“Grit has positioned itself with a unique and enviable platform to capitalise on the significant opportunities and growth on the African continent. Given the strength of the Company’s existing portfolio coupled with the opportunities presented by the Company’s recent LSE listing, we continue to look to the future with confidence. Our focus will be on total return including growing the dividend and net asset value growth of the portfolio. The platform established across the African continent is substantial and will be leveraged further to grow the portfolio and reduce the overall cost base of the Company.”
GR1T : Africa-focused property company Grit reports on its first year since listing