Collins Property Group (formerly Tradehold Limited) has posted its results for the six months ended August 2024, reporting a 28.6% increase in its earnings per share to 54 cents (FY2023: 42 cents) and a 7.9% decrease in its headline earnings per share to 35 cents (FY2023: 38 cents).

The Group converted to a REIT during the second half of the previous financial year, with listings on the JSE’s industrial sector as one of two companies in this segment.

With its total assets currently amounting to R12.1 billion (August 2023: R12.2 billion), its portfolio is split across SA, in Rand (83%), Namibia (N$ – 6%), in Europe (Austria and The Netherlands in € – 7%) and the rest in Africa (US$ – 4%).

At the end of the reporting period, Collins’ SA portfolio comprised 120 assets located mainly in Gauteng, KwaZulu-Natal, and the Western Cape equating to approximately 1.5 million square metres in lettable space.

The core of its portfolio (66%) consists of industrial properties and distribution centres, leased on a long-term basis to major national clients with the balance of the portfolio comprises convenience retail (28%) and office buildings (6%).

Of the total rental income in its SA portfolio, 79% is backed by national clients which has contributed to the Group’s 97.2% collection rate, slightly down from 98.3% during the prior period. The Group anticipates its collection rate to increase during the second half of the year and interest rates decrease and inflation eases.

Collins’ overall vacancy rate reduced from 3.9% as at 29^th February 2204 to 3% at the end of the reporting period with the weighted average lease expiry (WALE) standing at 4.2 years.

In the Western Cape, the Group sold 50% of a convenience retail centre at a yield of 7.75% and started construction on a 20 000m² centre to be anchored by a Checkers Hyper.

Its Namibian portfolio has reported a significant increase in activity with the finalisation of the sale of 6 000m² of office space in Windhoek which stood vacant for an extended period. The Group anticipates negotiations for the sale of the balance of its Namibian portfolio to be completed by the beginning of 2025.

The Group says it is looking to grow its presence in Europe where it currently owns six assets in Austria and, as a member of a consortium, four in The Netherlands.

During the reporting period, five assets were transferred which generated R110 million in cash with another four anticipated to conclude before the end of the current financial year. The Group is also in the process of concluding the sale of another six properties and if concluded, will release some R420 million for investment to be directed primarily offshore.

The Group’s net asset value (NAV) per share stands at R15 compared to R12.6 in August 2023, primarily attributed to deferred tax previously raised on future capital gains of R667 million being written back on its conversion to a REIT, with total distributable income of R177.1 million.

Its loan-to-value (LTV) ratio currently sits at 50% with an all-in-cost-to-income ratio of 20%. Its Board approved an interim dividend of 50 cents per share for the reporting period.