14th Feb 2019 09:01
LONDON (Alliance News) - Grit Real Estate Income Group Ltd said on Thursday it registered a rise in interim profit on gains in the valuation of the company's investment properties, as well as income growth.
For the six months to the end of December, the real estate investor reported a rise in pretax profit to USD24.6 million from USD17.5 million, due mainly to increased gains in the value of investments to USD15.0 million from USD9.2 million.
Gross rental income for the period increased by 25% to USD18.7 million from USD14.9 million the prior year, on new leases, and a full period from assets acquired during 2018.
Grit now has a portfolio of 25 investments, with occupancy at 96.0%, down from 96.7% as at June 30. Grit's total property valuation as at December 31 stood at USD552.8 million, up from USD383.1 million at June 30.
The company declared a dividend of 5.25 US cents per share, down from 6.07 cents the year before.
"The company continues to deliver on its targets of annual income distribution and total annual return growth and is well positioned to capitalise on the significant potential growth from its unique high quality portfolio of properties as well as further attractive investment opportunities across the African continent," said Chief Executive Bronwyn Corbett.
"Given the strength of the group's existing portfolio, the company expects to continue to deliver annual rental growth as well as possible capital value increases through yield compression."
Shares in Grit Real Estate were untraded in Johannesburg, last quoted at ZAR19.45, while London shares were up 0.7% at USD1.44 on Thursday.
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Grit Real Est.