Our opinion on the current state of AREIT(APO)
This newly formed real estate investment trust (REIT), aReit Prop, focuses on investing in yield-enhancing assets and areas that offer consistent, long-term rental growth. The company has stated that its investment properties consist of three leasehold properties, held for 40 years, which were independently valued ahead of its intended listing as a REIT on the Main Board of the JSE. The properties were acquired from vendors who were 100% shareholders of aReit Prop as of 31st December 2021, with the transaction settled through the issue of new shares.
In its results for the year ending 31st December 2022, aReit Prop reported revenue of R65.4 million and headline earnings per share (HEPS) of 63.97c. The company's net asset value (NAV) stood at 923.95c per share. The property portfolio consists of three properties: two in the hospitality sector and one in the medical sector, with a total gross lettable area (GLA) of 22,261m². These properties are situated in prime locations in Cape Town and benefit from strong long-term tenants.
In a trading statement for the six months ending 30th June 2023, the company estimated that HEPS would remain unchanged from the previous period, but basic earnings per share (EPS) would fall by 37.8%. The company attributed this decrease in EPS to the absence of a fair value adjustment that had been included in the prior year's results.
Currently, the company's shares are trading at very low volumes on the JSE, making it impractical for private investors until more liquidity is established. In a quarterly update, aReit Prop indicated that its audited results are expected to be published by the end of November 2024. Therefore, a proper evaluation of the company's investment potential will need to wait until the shares begin trading more consistently and the financials are fully released.
In its results for the year ending 31st December 2022, aReit Prop reported revenue of R65.4 million and headline earnings per share (HEPS) of 63.97c. The company's net asset value (NAV) stood at 923.95c per share. The property portfolio consists of three properties: two in the hospitality sector and one in the medical sector, with a total gross lettable area (GLA) of 22,261m². These properties are situated in prime locations in Cape Town and benefit from strong long-term tenants.
In a trading statement for the six months ending 30th June 2023, the company estimated that HEPS would remain unchanged from the previous period, but basic earnings per share (EPS) would fall by 37.8%. The company attributed this decrease in EPS to the absence of a fair value adjustment that had been included in the prior year's results.
Currently, the company's shares are trading at very low volumes on the JSE, making it impractical for private investors until more liquidity is established. In a quarterly update, aReit Prop indicated that its audited results are expected to be published by the end of November 2024. Therefore, a proper evaluation of the company's investment potential will need to wait until the shares begin trading more consistently and the financials are fully released.
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