Heriot REIT has achieved its record distributable earnings of R181,453 million for the six months ended 31 December 2024, representing a 42.5% increase compared to the same period in 2023 of R127,371 million.

Heriot’s acquisition of Thibault, through a share exchange agreement in June 2024, partly contributed to the growth with the inclusion of Thibault’s statement of comprehensive income on a line-by-line basis contributing R27.5 million to distributable income. In October 2024, the Group upped its interest in Safari Investments to 59.2% with Thibault already owning a 10% stake in Safari Investments, adding a further R8.9 million to distributable earnings for the period.

Heriot says that the financial performance of its Aparthotel portfolio has improved due to new developments coming online, strategic updates to assets, and outsourcing of management to hotel operators. Its industrial portfolio’s performance significantly improved from letting vacant space and increased rentals on lease renewals during the period. Group vacancies remained low at 1.5% as at 31^st December 2024 (2023: 1.7%).

Its net asset value (NAV) per share increased by 20.2% from R15.78 as of 31^st December 2023 to R18.96 as of 31^st December 2024 with the growth attributable to an increase in its property portfolio valuation supported by positive rental escalations on renewals and re-lets as well as a bargain purchase gain of R373.5 million recognised through the statement of changes in equity on the Thibault acquisition as of 30^th June 2024.

As a result of increased property valuations, Heriot’s loan-to-value (LTV) ratio decreased to 41.1% from 42.2% as at 31^st December 2023.

The Group declared an interim dividend of 56.84 cents per share for the six months, representing a 14% increase compared to 2023’s 49.87 cents per share.