Lighthouse Capital, one of the members of the Resilient stable of property companies which lost more than R100bn of their value last year will no longer invest in infrastructure assets.
CEO Stephen Delport said on Thursday the company, formerly known as Greenbay Properties, would only buy or develop directly held commercial real estate.
Based on the fair value of its assets, as at the end of December 2018, 81% of its portfolio was now exposed to directly held or fixed property, 14.9% to listed real estate, and 4.1% to listed infrastructure, according to results for the three months to December released on Thursday.
This shows a strong shift towards direct property compared with the end of December 2017, when 49.1% of Greenbay’s assets were classified as listed infrastructure, 32.7% as listed real estate and 18.2% as direct property.
Delport said he wanted Lightouse to be 100% exposed to direct property as soon as possible. “It’s difficult to put a time horizon on it but we want to be seen a property company and invest solely in property directly. The JSE is currently reviewing our status. They will change how they see us, from an investment company to a property company.”
In the past, much of its portfolio consisted of investments in listed funds, as well as stakes in infrastructure concessions. It now owns two malls in Portugal and one in Slovenia.
Lighthouse is a member of the Resilient group of property companies alongside Resilient, Fortress and Nepi Rockcastle, which saw a large sell off of their shares in early 2018.
The Financial Sector Conduct Authority (FSCA) is investigating the trades of these companies' shares for insider trading and market manipulation. Last Friday, the authority said that it needs at least another six months to complete its investigation.
Shopping centre owner Resilient and logistics-focused property firm Fortress have been under investigation by the FSCA since March 2018. Lighthouse Capital and Eastern European shopping centre landlord Nepi Rockcastle were added to the investigation in July.
The company said on Thursday it would declare total dividends for its September 2019 financial year of between 2.5 euro cents and 3.5 euro cents.