Texton Property Fund Limited (TEX) - formerly Vunani Property Investment Fund - is a property investment fund formed to invest directly in income producing properties that offer potential for capital appreciation.

The Fund was formed in 2006 and listed on the JSE in August 2011.

The asset management function is performed exclusively by Texton Property Investments (Proprietary) Limited whose strategy it is to extract value from its chosen market of A+, A and B grade properties. 

 

Texton recently acquired two "well located" properties in the United Kingdom with a gross lettable area ("GLA") of approximately 8,916 m² for £15,239,754 (R274,010,777). The inclusion of the purchases brings the portfolio property tally to 45 with a total GLA of 330,923 m², valued at circa R3.414 billion.

 

The UK transaction follows the Manco transaction which provided Texton with the following benefits:

• Exposure to industrial (56 938 m²) and retail (19 105 m²) sectors, which have been under-represented in Texton’s property portfolio
• Well located properties within prominent value retail, office and industrial nodes
• Redevelopment opportunities
• Lower vacancies compared to Texton’s current portfolio and peer average
• Potential for upward rental revisions

 

Interim results: Financial highlights (31 December 2014)

• Dividend per share up 11.7% from 40 cents to 44.68 cents per share
• Portfolio growth up 68.3% to R3.094 billion
• Net property income up 44.4% to R119.6 million
• Net asset value up by 13.4% from 877.81 to 995.72 cents per share
• Loan to value up from 17.1% to 34.7%

 

Salient features

• 75.6%  Blue chip tenants (based on revenue)
• 3.5%    Vacancy (2013: 6.2%)
• 90.1%  Tenant retention (based on GLA)