Lighthouse Capital makes progress on strategy

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Lighthouse Capital makes progress on strategy

Published Date: 2019-05-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Lighthouse Capital makes progress on strategy

The property investor is exiting its listed portfolio so it can grow its direct property and development assets.

Lighthouse Capital says letting activity at Planet Koper in Slovenia has been very successful, with a range of global brands signing up for space as it redevelops and reconfigures the shopping centre. It expects the project to be completed, with tenants including Office Shoes, Superdry, Subway and Puccini trading by October. Meanwhile, its Forum Coimbra centre in Portugal continues to trade well and remains fully let ahead of a planned refurbishment next year.

The two centres are Lighthouse Capital's biggest investments, with Forum Coimbra constituting close to half of its total assets. At Forum Viseu, also in Portugal, footfalls increased 11% year-on-year in the first quarter of 2019 after it introduced leading gym operator Fitness Hunt as a tenant.

The property investor, which changed its name from Greenbay Properties last year, invests globally in direct property and in listed real estate and infrastructure stocks.

Its investment in direct property has come at the expense of its listed portfolio, which it's reducing. Its exposure fell to €71.1 million at the end of March from €679 million in September as it returned capital to shareholders and looked for more development opportunities. It now plans to sell its remaining listed holdings, mainly Europe-focused real estate company Unibail-Rodamco-Westfield and French shopping centre owner Klepierre, to fund now direct investment opportunities it's busy evaluating.

For the six months to end-March, it grew total revenue by 30% to €15.1 million and reported distributable earnings of 1.831 euro cents, It's paying 1.5c out as an interim distribution. Investors can expect the same in the second half as it expects a full-year distribution of 3c, in the middle of its previous guidance of 2.5c to 3.5c.

Meanwhile, it continues to engage with the JSE and has applied to the FTSE Russell international index for a subsection reclassification from Equity Investment Instruments to the Real Estate Holding and Development subsection as the majority of its revenue is now generated from its direct property investments.

Its shares closed 0.6% higher at R7 yesterday.





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