Photo by: Bloomberg
JSE-listed Tower Property Fund has achieved a 7.6% year-on-year increase in distributable earnings to R109-million, or 45.2c a share, for the six months ended November 30.
Revenue for the period increased 55% to R183-million, while operating profit rose 38% to R133-million.
During the period under review, the company acquired four properties for R728-million. This included Tower’s first property outside South Africa – the VMD KVART office block, in Zagreb, Croatia – for €23.7-million.
Tower explained that the Croatian property market was at the opposite end of South Africa’s property cycle, which would diversify shareholder risk to South African macroeconomic issues. The company planned to further expand its exposure in the region.
The company last month signed a R1.1-billion sale and lease-back acquisition with Croatian firm Agrokor for four retail shopping centres.
Tower also planned to acquire South African properties valued at about R700-million in the first half of the 2016 calendar year. The acquisition of the properties was subject to conditions precedent and shareholder approval.
It was also undertaking value-enhancing refurbishment opportunities in its key portfolio and had a pipeline of refurbishment works valued at over R200-million.