Investec Property Fund lifts dividend as European unit shines
Investec Property Fund has raised its full-year payout to shareholders by 5.1% on a normalised basis, thanks to a strong showing from its European logistics portfolio.
“The distribution growth has largely been driven by the investment into and the performance of the pan-European logistics platform,” the fund said.
“The investment was underpinned by strong property fundamentals and value has been unlocked by a dedicated, on-the-ground management team with a proven track record in the European logistics sector.”
The group announced a final dividend of 73.51c a share for the second six months ended March, bringing the total dividend for the full-year to 142.32c per share.
The fund said the SA market “remains challenging and is expected to impact the performance of the fund’s SA portfolio in the short term”.
The restructure of struggling retailer Edcon would shave 1% off the fund’s next distribution, it said.
“Taking this all into account, the fund expects the SA portfolio to deliver net property income growth similar to 2019 during the forthcoming year.”
The pan-European logistics platform is likely to boost earnings again in the year ending March 2020. Earnings would be “further supported by the accretive nature of the recently announced pan-European light industrial investment”.
The fund said it expected to deliver dividend growth per share for the year ending March 2020 of between 3% and 5%.