Heriot targets at least 6% dividend growth


Heriot targets at least 6% dividend growth

Published Date: 2019-09-20 | Source: Stephen Gunnion | Author: Stephen Gunnion

Heriot targets at least 6% dividend growth

The real estate investment trust grew its 2019 distribution by over 10 percent on a comparable basis.

Heriot REIT is targeting growth of between 6% and 8% in its dividend next year despite difficult economic conditions that have affected the property sector.

The real estate investment trust, which listed on the JSE's AltX in 2017, has a diverse portfolio of 44 properties worth R4.59 billion. It's strategy is to acquire high quality properties, while redeveloping existing ones, such as the recent completion of The Heriot residential property in Cape Town's CBD.

In the year to end-June, rental income rose 6.4% to R473 million and net property income increased by 2.5% to R354 million. It grew distributable earnings to R206.5 million, or 80.87c per share. While that was just a 2% increase on its 2018 payout, it said the previous period included 13 months following a change in its year end from May to June. On a comparable 12-month basis they rose 10.4%.

Vacancies amounted to 1.3% of its portfolio at the end of June but have since reduced to 0.1% as it rented an additional 107 residential units at The Heriot.

Its shares didn't trade yesterday, closing unchanged at R11.

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