Business News 4.8.2016 11:42 am

Property in Croatia an effective hedge for Tower

Photo: Thinkstock

Photo: Thinkstock

The statement noted that the company had finalised its largest and most significant acquisition to date at a cost of €66.4 million in June after the reporting period.

Tower Properties has announced on Thursday that its offshore exposure had served as a hedge against “deteriorating” macroeconomic conditions in SA as it reported a 32% increase in headline earnings, from R125 million to R164 million, on revenue that was up by 52% at R376 million for the year to the end of May.

The owner of a diversified portfolio of 50 retail, office and industrial properties valued at R5.1 billion in South Africa and Croatia said its first Croatian property had increased in value by approximately R134 million in the 10 months since being acquired.

The company said active asset management of the portfolio had continued to reduce operating costs, with the ongoing roll-out of the greening programme initiated in 2013. Tower said all lighting retrofits in key properties and solar installations were outperforming management’s expectations. Selected properties continued to be assessed by the Green Building Council of South Africa with the Cape Quarter currently being evaluated for an existing building rating. Tower said it currently had two Green Building Council-rated properties.

A dividend of 92 cents per share was declared.

The statement noted that the company had finalised its largest and most significant acquisition to date at a cost of €66.4 million in June after the reporting period.

– African news Agency (ANA)

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