Deneb Investments, which is controlled by investment giant Hosken Consolidated Investments (HCI), is the "sleeper" on the JSE’s industrial board. Presumably HCI’s dominant shareholder precludes too many institutional investors seeking out large parcels of shares, and the Seardel legacy assets in the textile sector don’t exactly thrill punters. Any market interest in the share is mainly of the "deep value" variety — with Deneb’s share price offering a more than 50% discount on hard net asset value (NAV) of around 400c/share. The NAV is underpinned by a property portfolio generating bigger rentals as real estate is gradually redeveloped. In the year to end March Deneb’s property portfolio rose 4% in value to R1.2bn with revenue up 10% to R150m (with rentals from external tenants representing 71% of this). Operating profit before finance costs, excluding property revaluations, increased 6% to R104m.There is a refreshing sense of realism in CEO Stuart Queen’s commentary on the property ...

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