Our opinion on the current state of FTB

30 nov. 2023

Fairvest (FTB) is a real estate investment trust (REIT) which specialises in investing in smaller rural and non-urban shopping centers that are focused on consumers who have a lower living standard measure (LSM). It has 134 properties valued at R12bn. This is broken down as 67% retail, 23% office and 10% industrial. It also owns 60,9% of Indluplace (ILU) and 5,1% of Dipula (DIB). The company boasts that it is the top-performing REIT in South Africa with a return to investors of just under 18% for the year. In the year to 30th September 2023 the company reported revenue up 21,2% and headline earnings per share (HEPS) up 118,5% for the "A" share and down 8,5% for the "B" share. Vacancies were reduced to 4,5% and the loan-to-value (LTV) was 33,3%. The company said, "Load shedding, dysfunctional local municipalities, and uncertainty in the build-up to the national elections are expected to continue to negatively impact economic growth". Technically, the share was in a steady upward trend since April 2020 but has been moving sideways and upwards recently, especially since the latest results. Fairvest remains one of the better options in the property sector.