Safari Investments RSA Ltd (SAFARI) reported success in its strategic objectives for the past financial year
Safari Investments RSA Ltd (SAFARI) reported success in its strategic objectives for the past financial year, optimizing content and quality of its assets and realizing projected organic growth.
Its asset portfolio increased in value from R1,8 billion to R2,2 billion, a 23% increase as the board continued to focus on consolidating assets and to create dominant retail nodes through deep competitive advantage in geographical locations.
Revenue showed a 22% growth year on year (2015: R140 million; 2016: R172 million); while an average rental rate of R122 per square metre continues to hold sustainable room for escalations. Almost 90% of the portfolio is contracted to national retailers, and despite relocations and revamps in the past year the vacancy factor remained low at 4% during the year, today being only 2%. The portfolio saw a 10% increase in total built area from 139,000m2 to 153,000m2 ; operating cost was managed well at 28%, which is in effect only 24% if excluding corporate expenses not directly related to operations.
The year under review was marked by retailers that continued to trade well given the challenges faced by businesses with the weakening of the Rand and a competitive business and retail environment. The average trading density of its retailers weighed across SAFARI’s portfolio was R31,700 per square metre vs the IPD national weighed average of R29,200 per square metre. The net asset vale per share was R8.54 at year end, with R119,9 million distributed to shareholders in the year. SAFARI declared its next cash distribution of 32 cents per share due end of June 2016.
In October 2016 SAFARI will officially open its first investment across border, the new Platz am Meer Waterfront development on the coast of Swakopmund in Namibia. SAFARI is extremely proud of this beautiful development on the coastline comprising 27,000m2 of retail, 31 penthouses and 6 apartments, in total a 50,000m2 development and new landmark for Namibia. The prestigious anchors who partnered with SAFARI here include Woolworths, Checkers, Dis-Chem and Edgars.
SAFARI confirmed that it will continue to consider investment opportunities beyond South African borders with prospects looming in Africa and Europe. The board anticipates an expansion of its assets to 200,000m2 in the next two years with no reason not to reach R4billion to R5billion in assets in the near future.
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