With planned acquisitions Indluplace post strong revenue for Q1

Marius Muller

Indluplace properties in its financial report for first quarter shows an increase in revenue to ZAR195.0 million compared to ZAR160.7 million recorded in the year before.

Its Net operating profit jumped to ZAR114.4 million in the period in review against ZAR98.7 million recorded in 2016.

Total comprehensive income for the year was higher at ZAR117.4 million in contrast to ZAR106.7 million posted in ge previous year. In addition, headline earnings per share increased to 48.81 cents per share against 45.83 cents per share posted in 2016.

The board of directors has declared a gross dividend of 24.71489 cents per share (dividend number 8) for the quarter ended 31 March 2017.

indluplacesaid it is confident that ample opportunities for acquisitions exist and that Indluplace will grow the portfolio substantially over the next few years notwithstanding the uncertain financial climate. Given the defensive nature of its diverse residential portfolio with the strong fundamentals in this sector, Indluplace is well placed to weather the current uncertain economic environment. Without taking the effects of acquisitions finalised but not yet transferred or any potential transactions currently under offer or being negotiated into account, Indluplace projects that the current portfolio of properties will deliver dividend growth of between 5,5% and 6,5% for the full year to 30 September 2017.

With Indluplace properties current gearing of 6,5% and taking into account the significant available headroom, an appropriate amount of gearing could improve the dividend growth going forward. Given the nature of its business, Indluplace uses dividend per share as its key performance measure as it is considered a more relevant performance measure than earnings or headline earnings per share.

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