Fairvest Property Holdings Limited. JSE: FVT

Fairvest shares

Background of Farivest

  • Farivest Property Holdings is a property investment holding company and a Real Estate Investment Trust based in South Africa and listed on the Johannesburg Stock Exchange (JSE). Fairvest has a focus on retail assets in non-metropolitan and rural areas, community and convenience shopping areas and high-growth nodes close to commuter networks. The group’s portfolio comprises 37 properties with a gross lettable area of 140 000 m2, valued at R1.77 billion. Around 90% of the portfolio consists of retail properties, with a 10% exposure to the office sector.

  • Fairvest has a well-spread footprint in South Africa, with an income split of KwaZulu-Natal (28%), Western Cape (25.8%), Gauteng (20.7%), Limpopo (9.3%), Northern Cape (8.3%), Eastern Cape (4.8%), Free State (1.9%) and Mpumalanga (1.2%). The portfolio comprises 77% A-Grade anchor and national tenants.

  • The company’s main differentiator is its focus on building quality assets targeted at stocking goods for sale to the high-growth, lower LSM consumer market. The live online stocks chart shows that Fairvest share price has remained buoyant on the JSE.

Farivest Shares Growth Driver

  • Throughout its history, Fairvest has driven growth through securing high-grade tenants, strong tenant retention and healthy renewal escalations. Fairvest’s weighted average contractual escalation is kept relatively low, mainly as a result of the high national tenant component, which provides investors who buy Fairvest shares with a low risk investment profile.

  • Despite economic difficulty which impacted the property market, Fairvest has maintained consistent performance. The group’s latest data, covering the last six months of 2016, showed that revenue increased by 50.4%, profits stood at R62 million and dividends grew by 10%. This was attributed to the company managing to reduce vacancies from 4.4% to 1.6% and increase net property income by 12.2%. The company managed to buy six new properties during the year, and acquisitions of Redefine and Sibilo’s assets were also concluded. In addition, the company entered into the extremely high-growth township retail market in 2016, with the development of Nyanga Junction outside Cape Town. This further diversifies the group’s portfolio, and is a sign that Fairvest is looking to take advantage of the developmental overhauls taking place in many townships.

  • Going forward, the forecast is that continued volatility in the financial markets and economy will cause tough trading conditions to continue. Despite this, Fairvest’s
    improved occupancies, along with several key property acquisitions, should allow for strong growth in shareholder distributions.

Farivest Group Investor Tip

  • Fairvest has proven that it has a strong ability to attract quality A-Grade tenants, which is a critical factor in driving the profitability of property companies focused on low income areas. Despite difficult trading conditions and economic uncertainty which has reduced shopper demand, Fairvest share price and overall performance has remained fairly stable, with the shares continuing to be a popular buy.

  • Shareholders can expect continued growth in dividends, and Fairvest shares are well-positioned for upside growth. The fact that Fairvest only focuses on the South African market may be a deterrent for investors, but the shares look to be a sound purchase.

Farivest Major Shareholders

Vukile Property Fund, STANLIB, Coronation Fund Managers, Nedbank Group.

  • Sector

    Financials

  • Industry

    Real Estate

  • Sub industry

    Real Estate Services

How to buy Farivest Group Shares

  • Farivest : How to buy Farivest Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Farivest Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Farivest Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Farivest Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Farivest Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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