Fairvest remains resilient despite Covid-19


Fairvest remains resilient despite Covid-19


Published Date: 2021-03-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

Fairvest remains resilient despite Covid-19

The property investment holding company says its full-year distribution may be higher than its 2020 payout.

Fairvest says its 2021 distribution may be higher than last year's due to the resilience of its property portfolio in the face of the Covid-19 pandemic. The group invests mainly in grocery anchored shopping centres in non-metropolitan areas servicing lower-LSM markets, which it says have recovered quicker than expected and without any significant increases in vacancies.

Releasing results for the six months to end-December, the property investment holding company declared an interim dividend of 10.59c per share, up 7.2% from June's payout but below the 11.155c it paid out in December 2019. Still, it has revised its full-year guidance higher, saying it expects its distribution to be flat to 2% up on last year.

Revenue for the six months increased by 2.3% to R274.2 million and earnings per share (EPS) rose 20% to 17.84c. Headline EPS decreased by 0.4% to 10.84c. At the end of December, its net asset value per share amounted to 229.32c, 3.7% higher than June's level.

The company's loan-to-value, which measures debt as a ratio of the value of its properties, decreased to 32.2% as the like-for-like value of its property portfolio rose 3.4% to R3.43 billion. Vacancies reduced to 3.9% of total lettable area.

Fairvest's shares rose 4.4% to R1.88 yesterday.


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