| Mon 16 Feb 2004, 16:00 | | iFour Delivers On Promise To Investors |
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iFour Properties Limited - iFour Delivers On Promise To Investors
iFour Properties Limited
(Incorporated in the republic of South Africa)
Share code: IFR
(Registration number 2001/016118/06)
ISIN: ZAE000039326
iFOUR DELIVERS ON PROMISE TO INVESTORS
iFour Properties Limited, the R1,4 billion property loan stock company, has
released its interim results for the period to December 2003, declaring a
distribution of 37c per linked unit, in line with the forecasts previously
published in a circular to unit holders.
The company paid 16.64c of the 37c to shareholders in September 2003, with the
outstanding amount of 20.36c payable on 23 March 2004.
According to CEO Anthony Diepenbroek, the current figures are not comparable
with the previous periods, due to the significant growth in the portfolio which
has doubled from 50 properties valued at R750 million to 100 properties worth
R1,4 billion.
"We achieved these highly satisfactory results despite a tough trading
environment," commented Diepenbroek.
The good results, Diepenbroek said, were partly due to a recent bulk up in new
acquisitions of quality properties and iFour"s sound management of renewals,
which has seen its occupancy levels rising from 94% to 96%. Moreover, iFour
improved the lease expiry profile to the extent that more than 35% of its leases
expire beyond 5 years, which will ensure sustainable income over the long term.
In addition, the company has addressed a potential shareholder concern with
regard to an overhang caused by the deferred shares, which were due to be issued
in March 2004.
"iFour effectively eliminated the overhang, by purchasing the rights to the 6.3
million shares at a discount," he added.
Continuing on its growth strategy, iFour has recently purchased R75 million
worth of quality properties, in a diversity of sectors, which meet the company"s
criteria of generating a sustainable income and capital growth over the long
term.
"By maintaining a sound balance in our portfolio, we have managed to reduce our
exposure to the office market where oversupply and low rental growth has been
debilitating the industry for a number of years," Diepenbroek explained.
With a number of experts predicting a hike in interest rates towards the end of
2004, iFour has restructured its existing interest rate hedge to prevent
fluctuations from having a negative impact on the company"s performance.
"All new properties enjoy a 95% hedge against interest rate fluctuations," he
said.
According to Diepenbroek, iFour"s improved tenant relationships can be
attributed to the newly formed relationship with Pangbourne Properties which
manages the properties and is a major stakeholder in the company.
"Pangbourne"s long track record and experience in in-house property management
provide a sound balance of ownership and fee income and coincide with iFour"s
core business philosophy of retaining good tenants and ensuring that we achieve
high levels of customer satisfaction," he explained.
Looking at the year ahead, Diepenbroek said although capital growth was unlikely
to be as high as the previous year, he anticipated that income growth would
provide the backbone of performance for the sector.
"iFour has rigorously adhered to its core strategy of maintaining a balanced
portfolio of quality properties, with the potential to yield a long term
sustainable income for shareholders.
"iFour will continue to grow the size of its portfolio without compromising
either the quality of the portfolio or the sustainability of it distributions,"
he concluded.
Ends
Date: 16 February 2004
Issued on behalf of iFour
Contact: Anthony Diepenbroek, CEO
Tel: (011) 889 8700 or 083 258 8219
For further information, please contact Corporate Communications Consultants
Contact: Debbie Brewitt
Tel: (011) 783 8926 or 084 616 7000
About iFour
iFour is a property investment company, which listed on the JSE on 10 June 2002.
Its diversified portfolio of commercial, retail and office properties, was
valued at R1,4 billion in December 2003.
The company"s assets are spread over four provinces - Gauteng, the Western Cape,
KwaZulu Natal and the Free State. Pangbourne owns a 48% stake in iFour, and
also conducts the company"s property management.
iFour"s vision is to become a R2 billion market cap company, offering
shareholder spread, liquidity and security of earnings. The vision includes
portfolio growth and diversification through the acquisition of prime offshore
property, over the next five years.
iFour combines innovation, quality and service integrity to provide investors
with the opportunity to participate in a well structured, professionally
managed, property investment portfolio that yields sustainable returns.
Date: 16/02/2004 03:30:03 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
