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Thursday 16 September 2021

Good morning Voornaam,

It was a busy day on the market for property news. I have covered Growthpoint and Hyprop in one of the feature articles today, as the funds give important insights into the state of the market.

In further property news, Arrowhead is achieving better reversion rates than I'm seeing from most other funds. The rental reversion percentage is the decrease in the rental rate when a lease is renewed. A higher percentage means that tenants have more negotiating power relative to landlords. Arrowhead's reversions are better than -10%, while some funds are running at more like -20%.

The final property story for the day is from SA Corporate Real Estate Limited, which has received a payment of R34.5m from SASRIA out of a total claim of R558.2m. For the six months to June 2021, distributable income grew 10.7% and an interim distribution to shareholders of 10.27 cents per share will be paid. That's an annualised yield of around 9.5%.

Poultry business Astral Foods expects its HEPS for the year to September 2021 to not be more than 25% down on the comparable year. The chicken business is intensely difficult with paper-thin margins, which is why a company like RCL diversified away from the space.

Bell Equipment rose 3.7% on the news that IA Bell's acquisition of the stake held by John Deere has now been finalised. The market presumably views this as taking the company one step closer to a buyout offer from IA Bell, which has been on the cards for some time now.

Other feature articles today include a revenue growth update from international ICT business Datatec, as well as a successful capital raise by Jubilee for further investment in copper and cobalt tailings operations in Zambia.

For something with an international flav our, The Creative Accountant (a contributor to thefinanceghost.com) has written another article on China. The country is dominating headlines at the moment, as the CCP continues to have a material impact on major industries. In this article, he explores the concept of common prosperity and why these policy shifts are happening.

Good luck in the markets today,

The Finance Ghost

Local and Offshore Market News

Jubilee successfully taps the market for capital Jubilee has raised USD41.8m to increase its investment in the Zambian operations and execute an expansion plan. Read More

Datatec achieves revenue growth of 15% Datatec has extensive global operations, with Europe as its largest region. The remote working trend has been lucrative. Read More

Growthpoint and Hyprop report earnings When interesting property funds release earnings, it's well worth paying attention. Read More

International Money Transfers in partnership with InceConnect The JSE Top 40 Index traded below the flatline at the 57,929 level on Wednesday. Read More

International Money Transfers in partnership with InceConnect The JSE TOP 40 Index traded lower at the 58,078 level on Tuesday, led lower by the miners and retailer Pepkor. Read More

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