Real Estate Investor Magazine South Africa December/ January 2018/2019 | Page 49

LISTED
26. Stor-Age earns licensing fees on these properties.
Highlights 
• Dividend up 9.1% to 51.30 cps 
• SA rental income and net property operating income up
17.4% and 14.2%, including like-for-like growth of 9.4%
and 9.8% respectively 
• Strong operating performance in UK business 
• Acquisition of All-Store and completion of new Bryanston
property 
• Development of Craighall ( Johannesburg) underway 
• Acquisition of Managed Portfolio (12 properties)
completed post period – investment property valued at
R5.3 billion 
CEO Gavin Lucas says Stor-Age’s growth trajectory is
attributable to persistent focus on outperformance in its key
focus areas, including revenue management, developments and
acquisitions. In this light portfolio occupancy closed 72 400m²
up on September 2017 and total property revenue almost
doubled to R225.8 million.
The acquisition of the All-Store property, located in Cape
Town’s northern suburbs, was completed in April for R52
million and added 5 500m² GLA to Stor-Age’s local portfolio.
Looking ahead he remains cautious but positive. “We do not
expect the SA economy to show significant signs of improvement
in the short-term. However, we believe Stor-Age will continue
to demonstrate its resilience through the downcycle.” 
SAFARI
Niche portfolio underserved
locations outperforms
contacting sector
JSE-listed REIT Safari
Investments RSA Limited
today posted strong results
for the interim period ending
30 September 2018.  The
Company differentiates itself
from other listed REITS by
Deon Engelbrecht, CEO
investing in quality income
generating properties located
in regional underdeveloped peri-urban locations close to transport
hubs that attract consumers and retailers to their centres.  
Highlights
• Distributable income increased 36% to R88 million for the
period and property revenue was up 7% to R126 million. 
• Prudent steps towards sustainability impacts distribution
• Property revenue increased 7% to R126 million in line with
rental escalations
• Distributable income up 36% to R88 million
• Loan to value of 17%
• 88% of GLA to national tenants
• Low vacancy of 2%
• Strong acquisition and development pipeline 
• Dividend impacted by prudent steps to avoid distribution
from capital reserves
Newly appointed CEO, Dirk Engelbrecht, commented: 
“Our focus on regional, underdeveloped locations has proven
defensive, underpinned by strong demand for our centres as
reflected in the low vacancy rate of 2%, and comparatively high
trading densities across the portfolio.” 
Taking the current economic climate in South Africa and
Namibia into account, Engelbrecht said that “the board decided
to no longer distribute from capital reserve, in order to ensure
the long term sustainability of Safari and faster growth of
distributable income per share”.
Management has forecast an increase on dividend per share of
between 8-10% for the period ending 30 September 2019.  This
forecast is based on current long-term lease agreement escalations
and the current number of shares in issue.  
The Group earlier announced the acquisition of Thornhill
Shopping Centre in Polokwane, with effective control gained from
1 October 2018. Construction of Nkomo Village Shopping Centre
is on schedule and commenced trading on 22 November 2018.
The centre is anchored by Pick n Pay and Boxer Superstore with
national tenants such as Mc Donalds, Builders Warehouse, Food
Lovers Market, The Gym Company and Roots Butchery being
introduced to the Atteridgeville community for the first time.
NEPI ROCKCASTLE
NEPI Rockcastle
announces opening of
prime shopping centre in
Serbia
NEPI Rockcastle is
the largest listed real-
estate company focused on
Central and Eastern Europe
(“CEE”). The group owns
and manages a portfolio of
Alex Morar, CEO
dominant retail properties
in the following high-growth CEE countries: Romania,
Poland, Slovakia, Hungary, Bulgaria, Croatia, Czech Republic,
Serbia and Lithuania. NEPI Rockcastle has a highly-skilled in-
house management team which combines asset management,
investment, development, leasing and financial expertise.
NEPI Rockcastle is investment-grade rated by Moody’s,
Standard & Poor’s and Fitch. Its shares are listed on the
Johannesburg Stock Exchange (“JSE”) and Euronext
Amsterdam (“Euronext”). The company distributes at least 90%
of its recurring earnings on a semi-annual basis.
NEPI Rockcastle announces the official opening of its
59th  property, Novi Sad Promenada in Serbia’s second largest
city, Novi Sad. Novi Sad is a thriving city of approximately
320,000 inhabitants.
Key facts
• Gross leasable area (GLA): 49,000m2
• Gross building area (GBA):  158,000 m2
• Tenants include: Armani Exchange, Cineplexx, Adidas,
Calvin Klein, Converse, Diesel, Guess, Lacoste, Levi’s,
Nike, Replay, Sport Vision, Superdry, Timberland, Under
Armour, Univerexport, LC Waikiki, LPP (Cropp, House,
Mohito, Reserved, Sinsay), New Yorker and Inditex (Zara,
Massimo Dutti, Bershka, Oysho, Pull&Bear, Stradivarius
and Zara Home).
Commenting on the new development, NEPI Rockcastle’s
chief executive officer, Alex Morar, said,“NEPI Rockcastle
continues to execute its development and acquisition pipeline,
maintaining a key focus on understanding and responding
to retailer and consumer demand. The positive outlook for
consumer growth in the region for the next 10 years makes us
look forward to our upcoming projects.
SA Real Estate Investor Magazine DECEMBER 2018/JANUARY 2019
47