Sycom final results March 2013
Revenue increase to R651.4 million (R544.2 million). Profit and total comprehensive income for the year rose to R1.2 billion (R734.7 million). However, headline earnings per unit fell to 185.32cpu (190.77cpu).
A final gross ordinary distribution of 90.60cpu has been declared.
In terms of its strategy, Sycom continues to seek opportunities that will enhance shareholder value, including the expansion of retail assets that are performing well and have further bulk rights, acquiring additional shares in co- owned assets as opportunities arise, and by acquiring good quality office and retail properties that offer sound long- term growth prospects. Underlying rental growth remains sound in the retail portfolio, and whilst office rentals are still under pressure (with downward reversions on renewals dampening contractual rental growth), there are definite signs of a firming in 'A' grade office rentals over the last 12 months. Accordingly, the board expects distribution growth for the next financial year to be in the order of 6%. In the longer term, with normalised office vacancies and firming 'A' grade rentals, and with gearing closer to 30%, growth in distributions can be expected to move into the 7% to 8% range, in line with the potential of Sycom's high quality property portfolio.