(Alliance News) - Stenprop Ltd on Friday said vacancies have fallen and rents have risen in the second quarter of its financial year.
Stenprop is a real estate investment trust which focuses on providing space for small and medium sized enterprises.
As at September 30, occupancy was at 93%, up from 92% at June 30 and 91% at March 30.
In the second quarter ended September 30, like-for-like passing rent was up 2.5%, compared to the prior quarter's increase of 1.0%. Like-for-like passing rent was up 5.1% over last 12 months.
Chief Executive Paul Arenson said: "The continued high demand for our product, which reflects the quality of our MLI portfolio and our asset management team, has enabled us to deliver a trading update today that is characterised by strong rental growth, high levels of rent collection and a further reduction in vacancy.
Stenprop is on track to becoming a 100% mult-let industrial property company, Arenson said.
The company said it took advantage of disruption in the investment market to secure four new MLI acquisitions during the quarter totaling GBP36 million and 436,000 square feet of MLI space, taking the total MLI portfolio to over fiv million square feet for the first time.
Across the MLI portfolio, the October quarterly rents collected as at 21 October, or 22 days after the due date, reflected 70% of rents billed. As at the equivalent date after the March and June quarters, rent collections stood at 64% and 66%.
Stenprop has now collected 88% of rents due since April to date and has deferred a further 1% until a later date.
"Whilst we draw confidence from this performance over recent months, we are also aware of the threat from the pandemic and Brexit and the uncertainty this brings, particularly as we enter the winter months," Arenson said.
Stenprop shares were last traded at ZAR27.49 each at the Johannesburg close on Thursday, and 123.96 pence each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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