Equites CEO on COVID-19 impact, how to build a strong construction industry in SA
Equites Property Fund has declared an interim dividend of 74.44 cents per share, however the group has reported an over 100 per cent fall in its headline earnings per share to 7.6 cents per share. The group also expects that its e-commerce strategy will drive demand in the UK, which saw a sales surge of 26 per cent in the first half of 2020, but its South Africa e-commerce space has not experienced the same highs. Andrea Taverna-Turisan, CEO of Equites Property Fund, joins CNBC Africa for more.
Tue, 13 Oct 2020 11:29:23 GMT
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AI Generated Summary
- Equites Property Fund observes significant performance disparities between the UK and South Africa, with a focus on e-commerce growth in both markets.
- The company remains optimistic about future growth, leveraging demand in the UK market and pursuing opportunities in supply chain optimization and sale and leaseback initiatives in South Africa.
- Equites Property Fund's sustainability initiatives, including a recent sustainability linked loan with Standard Bank, demonstrate the company's commitment to innovation and differentiation.
Equites Property Fund has recently declared an interim dividend of 74.44 cents per share, however, the group has reported a significant over 100 per cent decline in its headline earnings per share to 7.6 cents per share. Despite this, the group remains optimistic about its future outlook, particularly in the UK market. Andrea Taverna-Turisan, CEO of Equites Property Fund, discussed the performance disparities between the UK and South Africa in a recent interview with CNBC Africa. In the UK, the e-commerce sector has seen a surge in sales, with a peak of 33% during the month of May, although it has slightly decreased to 26-27%. However, the outlook remains positive, with increased capital investments and development opportunities in the e-commerce space. Equites Property Fund is confident in its joint venture in London and anticipates benefiting from the growing demand in the UK market. On the other hand, the South African e-commerce sector is still catching up, but significant growth is expected in the future as major retailers implement strategies to enhance their online presence. The company highlighted some key performance indicators, including a 0.4% increase in value per share, stable distribution per share, and a vacancy rate of 3.8%. Looking ahead to future growth, Equites Property Fund aims to leverage demand in the UK market and capitalize on supply chain optimization and sale and leaseback opportunities in South Africa. The company recently closed a sustainability linked loan with Standard Bank, which not only provides financial benefits but also demonstrates their commitment to sustainability and innovation. The CEO emphasized that these initiatives help differentiate Equites Property Fund from competitors and attract potential clients. As the South African economy faces challenges due to structural weaknesses, Equites Property Fund is hopeful for a strong construction industry to support infrastructure development. The CEO stressed the importance of spade-ready projects to stimulate economic growth and job creation. The construction industry plays a vital role in Equites Property Fund's operations, and a healthy construction sector would benefit both the company and the economy at large. Overall, despite the current economic uncertainties, Equites Property Fund remains resilient and proactive in pursuing growth opportunities and sustainable practices.