WHERE TO INVEST: Resilient posts double-digit growth and Nepi Rockcastle heads for the Spanish sunshine
The Resilient real estate investment trust lives up to its name with double-digit growth, while Europe-focused Nepi Rockcastle wants to get in on the action in Spain.
Resilient Reit, a South African real estate investment trust, has experienced impressive double-digit growth over the past six months, despite undertaking major refurbishments at six of its 28 retail centers. The group maintained strong tenant demand, with leases renewed at a 2.5% premium and new leases secured at a 7.1% premium.
The fund's strategy focuses on retail centers with at least three anchor tenants, and it currently holds significant exposure to The Foschini Group, Pepkor, Mr Price, and Shoprite Checkers. While not all provinces in South Africa experienced growth, KwaZulu-Natal led with a 4.4% increase, while Eastern Cape sales dropped 2.5%. Resilient also has a strategic ownership stake of 27.3% in Lighthouse Properties, a JSE-listed property fund focusing on France and the Iberian Peninsula.
Overall, Resilient's balance sheet is healthy, with a loan-to-value ratio of 36.1% and competitive funding rates, which have contributed to earnings growth.
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