Siyathenga's enhanced portfolio consists of 17 properties with gross lettable area of 242 233m2. The percentage of retail properties remains at 84%, with office space making up the balance. Strong earnings growth was achieved, taking investors' distributable earnings to R64.9 million (R38.4 million). Robust revenue growth was also recorded - up from R118.9 million to R187.6 million.
Distribution
The distribution per linked unit was in line with management expectations, rising by 11.2% to 57.5c (51.70c).
Prospects
Siyathenga looks forward to a continuation of supportive economic and industry fundamentals in the new financial year and beyond. As a consequence of the expected economic strength in the country, rental streams of Siyathenga are expected to remain robust and vacancies low. The group will continue a strategy of growing its asset-base through selective acquisition and the upgrading and expansion of The Boardwalk Centre. The strategic objective is to grow the value of assets under management to R2.5 billion within two years. Siyathenga management is cooperating with Pangbourne in the development of a neighbouring site to create a significantly expanded centre to cater for strong tenant demand. Construction work on the 38 000m2 extension has already begun, with completion expected by April 2008. The extension is also currently more than 90% let. This will turn Boardwalk into a leading destination centre and significantly enhance the value of our original asset. Siyathenga management has entered into negotiations with Pangbourne for the purchase of this new phase of the Boardwalk development. The opportunity to acquire the Boardwalk extension from Pangbourne will be energetically pursued. The board have confidence in the future of the country and industry, and Siyathenga has established a strong foundation for sustained growth.
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