Property group Newpark, which includes the JSE's head office in its portfolio, is expecting to increase its payout to shareholders when it releases its next annual results following better interim results.
The company, valued at about R450m on the JSE, said on Thursday in its results for the six months to the end of August that its full-year funds from operations per share (FFOPS), a measure of the cash generated by a Reit, is expected to improve 13.6%-25.6% to 76.34c-84.38c and its dividend 5%-15% to 70.55c-77.27c per share.
“The revised forecast takes into account lower-than-anticipated refurbishment costs, improved cost recoveries, as well as adjustments to assumptions on rental renewals and income growth prospects within the portfolio,” the real-estate investment trust (Reit) said.
Meanwhile, revenue improved 15.6% year on year to R68.9m, the interim dividend was hiked 40% to 35c per share was, and FFOPS rose 28.9% to 40.18c.
“The combination of assets that have sound property fundamentals and a high-quality tenant mix has provided a strong foundation to the portfolio. During the period under review, management has continued to focus on optimising income and de-risking the portfolio,” the company said.
Newpark’s portfolio includes four properties with a combined value of R1.3bn and gross lettable area (GLA) of 57,857m², about the size of eight soccer pitches.
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