Increasing property sector payouts

Well established property counters have revealed strong yearly results over recent weeks.

A 12.6% weighted average distribution growth was recorded for the year until June in comparison with the year to last June, based upon calculations by Meago Asset Managers — far ahead of the average 8% growth forecasted by most analysts.

Real estate investment trusts (REITs) have been advantaged from owning rand hedge investments in offshore property companies and from careful management of their assets such as malls.

The Resilient Property Income Fund, JSE’s fifth largest listed REIT, recorded a rise in its distribution payout to investors of 20.94%.

10.6% distribution growth in Texton property fund

Texton Property Fund are betting the fund’s future growth on ‘tight management’, as the property counter announced a distribution growth of 85, 47 cents up by 10.6% for the year up to June 30^th.

Investors from Texton Property Investments purchased the management company of Vunani Property Fund for R117million last year, followed by a subsequent board reshuffle which Texton claims the benefits of this shakeup have been evident.

Benefits of the report for the financial year includes the fund increasing its acquisition activity by 40% in comparison to the previous year, which has been said to enhance the portfolio quality and income sustainability.