OCTODEC Investments’ dominance in the Johannesburg and Tshwane central business districts (CBDs) is set to hold it in good stead during the next few years as the group reported relatively strong results for the year to August.
Finance director Anthony Stein said Octodec grew its total distribution per share 7.7% to 189.2c in the year to August, despite tough business conditions and muted economic growth. This was the first fullFINANCIAL year for Octodec since it merged with Premium Properties. Octodec holds 330 properties in its portfolio including joint ventures.
“The merger has enabled us to free up management time, create a larger company, gain favourable access to capital and have a stronger balance sheet which will enable us to pursue larger developments,” Mr Stein said.
Maurice Shapiro, fund manager at Ma’alotINVESTMENTS, said Octodec had become a reliable property stock for investors seeking consistent distributions.
They are benefiting from an urbanisation story. People are moving to the CBDs looking for work andPLACES TO STAY. Octodec realises strong returns from its mostly government tenanted offices in the Tshwane CBD and also from residential properties there. I would expect the group to meet or surpass the top end of its 6% to 8% distribution forecast in the next financial year.”
Octodec is more than 40% owned by MD Jeffrey Wapnick’s family and also by directors.
Evan Robins, listed property manager of Old MutualINVESTMENT Group’s MacroSolutions boutique, said Octodec remained at heart a family-run business that was focused on the long term and that investors appreciated that distribution payouts could be lumpy.
“They have decades of experience in the Johannesburg and Pretoria CBDs, which helps them.”