For the year ended December 2016, Sanlam Africa Core Real Estate Investments Ltd (SACREIL) reported a profit before tax of $3.8m, a significant improvement from the loss of $2.2m reported in the previous reporting period. SACREIL is listed on the Stock Exchange of Mauritius Ltd, with core real estate assets including Accra Mall in Accra – Ghana, Capital Properties in Dar es Salaam – Tanzania and Atlantic House in Lagos – Nigeria. The company declared a cash dividend of $0.06c per share for the year ended December 2016, bringing the aggregate dividend per share for the 2016 financial year to US$ 0.1225.
According to SACREIL, Accra Mall has continued to performed well in a difficult market as the footfall at the Mall increased 27% y-o-y in 2016. While some tenants experienced lagging pressure on their business with the downturn in the economy during 2015, the pressure is expected to dissipate in 2017 because the Ghanaian economy grew 3.6% in 2016.
Trading conditions for their office property in Nigeria were extremely difficult. Atlantic House was 34% vacant as at December 2016 as increasing competition and low demand relative to supply put downward pressure on rentals.
Similar to other reporting periods, Capital Properties, their asset in Dar es Salaam, Tanzania currently has a temporarily increased vacancy rate, due to the refurbishment of one of its office towers.
The company’s Net Asset Value per share as at 31 December 2016 was US$ 5.7625 and the Loan to Value Ratio (total 3rd party debt in the group divided by the group’s total gross asset value) was 33.1%, in aggregate.