Indluplace concerned results will not improve in short term
SA’s weak economy weighs on annual results as the property group warns it is likely to do even worse in next financial year
Residential-focused Indluplace Properties is the latest real estate company to feel the brunt of a weak economy, warning that it is likely to do even worse in 2019 and report a drop in dividends. A number of South African property companies have reported weak results in the latest reporting season and have warned of worse times ahead, including Rebosis Property Fund, Octodec Investments and Delta Property Fund.
Indluplace, which is the only purely residential fund listed on the JSE, released disappointing results for the year to September 2018, reporting flat dividend growth. The company’s performance was weakened by problems around a head lease at its Highveld View property in Witbank. The overall residential vacancy rate across its portfolio was 8.4% at the end of September, in part due to problems surrounding the Highveld View property and the fact that it struggled to fill vacancies at its newer properties as consumers were under pressure. Head leases refer to agreements s...