Aug 21 2013

Prospective Investors

Ascension Properties Limited, founded in 2006, is a black managed and substantially black owned property loan stock company listed on the JSE. The company is a property income fund focusing on commercial office buildings in South Africa with a strong focus towards government and other empowerment sensitive tenants. 

The fund converted to a Real Estate Investment Trust (REIT) in line with the new REIT legislation in June 2013.  

The company’s capital structure consists of A and B Linked Units. Each Unit consists of one share and one debenture. The A-Linked Units have first right to the net distributable income of the fund with distribution of 38 cents per unit for the 12 months to 30 June 2013, growing at 5% per annum for the first five years with growth thereafter at the lower of inflation or 5%. The B-Linked Units receive the residual net income of the portfolio, with a higher anticipated growth in distributions compared to the A-Linked Units.

Ascension is currently forecasting a 5% growth in the A Linked Unit and a 20% growth in the B-Linked Unit distribution to the 2014 financial year.

High Growth Strategy

Ascension’s primary objective is to grow the quality and sustainability of income through rental escalations, increasing rentals, building re-tenanting and more efficient utilisation of space. The company may, from time to time, redevelop properties to enhance value and support longer-term income and capital growth. In this regard the board have resolved to limit property redevelopments to a maximum of 10% of the portfolio at any given point in time.

Ascension is well positioned for growth

  • By taking advantage of its track record and BEE profile to secure additional long term leases with Government and other quality tenants
  • By renovating and developing certain of its properties to secure further anchor tenants, improve yields and space utilisation
  • Management has a strong pipeline of targeted acquisitions and intends to confirm to grow the portfolio by at least R1 billion per annum

Graphs (Analysis of Portfolio)

The day to day property management of individual properties is handled by either Broll Property Group (Proprietary) Limited (www.broll.co.za) or JHI Properties (Proprietary) Limited (www.jhi.co.za).

Read 6657 times Last modified on Tuesday, 27 August 2013 10:51
Ascension Properties

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