Fairvest Property Holdings Limited (“Fairvest”) today announced results for the year to 30 June 2019, with annual distributions increasing by 8.1% to 21.773 cents per share.
“We are pleased to be able to deliver above market distribution growth in what can only be described as an extremely tough economic climate. Fairvest’s continued financial outperformance is attributable to its focus on a differentiated sector of the market and its experienced management team who has managed the property portfolios through many different economic cycles. Our persistent drive to excel at property fundamentals continues to be reflected in low vacancies and record- low arrears, high tenant retention and solid growth in net property income.”
Darren Wilder, Chief Executive Officer of Fairvest
Fairvest has been one of the best performing property stocks in the South African market, delivering inflation-beating dividend growth for more than six years and substantially outperforming the SAPY index over 1, 3 and 5 years.
Fairvest maintains a distinctive focus on retail assets in underserviced, high growth sub sectors. The portfolio is weighted toward nonmetropolitan and rural shopping centres, as well as convenience and community shopping centres servicing the lower income market, in high-growth nodes, close to commuter networks.
Wilder said that the company has performed well in tough economic conditions as it has a well-defined strategic framework with includes not straying from its portfolio focus of high-quality peri-urban and rural community centres with clear value extraction opportunities. The company favours performance over size and has therefore been disciplined in its pursuit of value adding transactions, only at the right price, to benefit the company and its shareholders over the long term. To maximise its participation in attractive new opportunities coming to the market, the company has developed strong strategic relationships with experienced developers and landlords of both brown and greenfield projects where it often assumes a structured funding role for its strategic partners. Its low gearing affords it the ability to take advantage of opportunities and make yield accretive acquisitions. Wilder went on to say “Although this will remain a strategic objective it is not a strong focus until we see improved trading conditions
