Grit misses target after London listing

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Grit misses target after London listing

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Published Date: 2019-10-01 | Source: Stephen Gunnion | Author: Stephen Gunnion

Grit misses target after London listing

The pan-African real estate company says currency headlines and the costs of corporate activity reined in its total shareholder return.

Grit Real Estate Income Group says it missed its targets last year due to currency headwinds and the costs of corporate activity, including its listing on the London Stock Exchange. But the pan-African property investor says it continues to deliver on its objective of building a diversified portfolio of hard currency income generating assets across carefully selected African destinations.

Grit's portfolio of 25 investments spans seven countries, including Botswana, Kenya, Mauritius, Morocco, Mozambique, Ghana and Zambia. Following the end of its financial year, it acquired the Club Med Cap Skirring property in Casamance, Senegal. Total income producing assets were valued at $825 million at the end of June, with like-for-like property valuations increasing by 3.8%.

The group achieved a total return of 12.4% from the performance of its property portfolio in the year to end-June and delivered a total shareholder return of 9.3%, including an annualised dividend yield of more than 8.5%. Excluding the exchange rate and corporate activity costs, it said shareholders would have enjoyed a total return of 14% against a target of 12%.

Net property income rose 26% to $32.3 million and headline earnings per share rose 27% to 8.09 US cents. Its net asset value decreased by 2.7% to 131.9c and it increased its dividend by 0.1% to 12.2c per share

Grit reduced its property loan-to-value to 40.6% from 43.7% and its overall portfolio remained well-tenanted with a 97.1% occupancy rate. It said it was well-positioned to continue growing the portfolio and had identified a pipeline of near-term acquisition targets.

Its shares closed unchanged at R16.75 yesterday.





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