Interim Results Show Positive Performance
The company released its reviewed interim consolidated half year results for the period ending 30 September 2017 and operations showed positive performance. The September 2017 interim property revenue increased by 24% compared to the September 2016 interim figure: R94.8 million (2016) to R117.6 million (2017). The increase is a result of an improved tenant mix and reduced vacancy rates together with a first full year of revenue recorded on Platz am Meer in Namibia. If Namibia is excluded in a like for like comparison then revenue increased by 10,5%.
Operating expenses as a percentage of revenue decreased from 31.5% (September 2016) to 27,6% (September 2017). Most of the current leases are in the first half of the lease term while renewals are negotiated well in advance with an average annual escalation rate of 8%. The portfolio vacancy rate was only 1%, portfolio national tenants 89%, and the portfolio trading density average was at R32,300 per m².
An interim distribution of 35 cent per share was declared on 8 December 2017.
The 2017 capital raising by Safari settled a significant portion of debt resulting in a substantial saving on interest and ensures that the company minimizes financial risk associated with high debt levels.
Interim results September 2017
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