In results on Thursday, the specialised residential property owner declared a dividend of 5.60803c a share for the six months to December.
Although the reporting period covers six months, the results represent operating activities for three months only, as Transcend recognised income and expenditure from the effective date of October 1 2016, the company said. The profit for the current period was largely due to a net gain on fair value adjustments to investment property of R11.39m.
The headline earnings attributable to equity holders was R5.14m.
At about 3%, very few residential portfolios in SA are listed, but there is interest in specialised, lower-risk funds.
Transcend, which owns differentiated rental residential property, listed in December. It had existed as an entity since the beginning of October. CEO Rob Wesselo said the fund aimed to give investors exposure to a “robust rental market”. He said the company had bedded down its portfolio and was on track to bulk up with quality residential assets in the six months ahead.
“We are very happy with what we have achieved so far. Our assets are performing very well in a tough market.
“We nevertheless face the challenge of some tenants struggling with affordability.
“We are managing to replace tenants when we have to and our vacancies remain low,” said the CEO.
Transcend would seek strong, high-quality assets during the rest of 2017, he said.