REAL ESTATE
Housing unit the weak link in SA Corporate results
CEO Rory Mackey warns a number of assets in the residential subsector are being held back by tough economic conditions
SA Corporate Real Estate, the diversified owner of industrial, retail, commercial and residential buildings located primarily in the big metropolitan areas of SA, with a secondary node in Zambia, grew its dividends 4.4% in the six months to June. The company declared a dividend of 22.38c a share from 21.44c a share for the corresponding period in 2016. The six-month performance was affected by nonrecurring income, resulting mainly from a recovery of written-off bad debt and increased vacancies in the company’s residential portfolio. Historically, SA Corporate has been weighted towards retail and industrial nodes, but it has invested in residential real estate in recent years. Net property income increased 13.8% during the reporting period.
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