Equites delivers solid full-year distribution growth

Equites Property Fund, a real estate investment trust, has reported a 29.9 percent increase in full-year headline earnings per share for the financial year ended February 28. CEO Andrea Taverna-Turisan recently sat down with CNBC Africa to discuss the company's performance and the factors driving their success. Equites' earnings per share saw an impressive 345 percent rise, while distribution increased by 5.2 percent. Despite the strong numbers, questions were raised about why the distribution wasn't higher. Taverna-Turisan explained that the distribution is linked to the rental income as a REIT and that they distributed 100 percent of what was possible. She highlighted the exceptional performance in the UK market, attributing it to factors like e-commerce and advanced technology in supply chains. In South Africa, Equites boasts fully let properties, signaling the high demand for their top-notch facilities. The company is actively expanding its capacity, with plans to invest billions in new spaces in both South Africa and the UK. Taverna-Turisan emphasized the meticulous process involved in property investment, ensuring competitive advantage and sustainable growth. Despite concerns about inflation and reversions, Equites remains confident in managing potential challenges due to their long-term lease agreements and skilled management team. With a promising pipeline and a focus on innovation, Equites is set for continued success in the real estate market.