Safari Investments RSA Reports Impressive Growth in 2024 Distribution
In a significant update for investors and market watchers, Safari Investments RSA, a distinguished player on the Johannesburg Stock Exchange (JSE), has announced a robust 13.3% increase in its distribution, now standing at 34 cents per share. This marks a notable rise from the previous distribution of 30 cents per share for the preceding six months. The total distribution payout ratio remains a solid 100%, a clear indication of the company’s commitment to returning value to its shareholders, according to Africazine.
The operational front looks equally promising. Safari Investments reported an operating profit of R163.44 million, which reflects a 9% growth compared to last year. The company is steadfast in its strategy to develop a premium portfolio composed of convenience retail and small regional shopping centers whereas the majority of their assets are supported by long-term leases from national tenants. This approach has kept their occupancy rates impressively high at 97.9%, just a shade above last year’s figure of 97.8%. With a mere 2.1% vacancy rate, it’s clear that Safari’s properties are performing well in their respective markets.
Notably, the company’s investment properties saw a commendable 10.7% increase, raising the net asset value per share to R10.55, a 14.7% rise. As part of ongoing strategic realignment, Safari is strategically exiting two investments, Platz am Meer Centre and Mnandi Shopping Centre, to streamline operations and focus on core assets.
The board of directors remains optimistic about the future performance of the group, maintaining guidance for a total distribution per share between 66 cents and 69 cents, dependent on stable economic conditions. Following a strategic adjustment in fiscal year-ends, the company declared a distribution of 78 cents per share for the 15-month period ending June 30, 2024.
In addition to the impressive financial metrics, Safari recently announced exciting developments in Pretoria’s Lynnwood precinct, where a mixed-use project is on the drawing board, supported by letters of intent from major food retailers. This indicates a robust interest in the site and its potential to become a leading commercial destination.
As of the latest trading session, Safari Investments’ share price saw an uptick of 0.9%, closing at R6.75, which represents a fantastic 19.6% increase year-on-year. This is quintessential evidence of the company’s robust performance in the competitive retail property market.
In summary, Safari Investments RSA continues to demonstrate resilience and growth within the retail sector, making it a company to watch in the upcoming months.
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Tags: #BusinessNews #SouthAfrica #RetailMarket #Investments #EconomicGrowth
