Octodec Investments Limited. JSE: OCT

Octodec shares

Background of Octodec

  • Octodec Investments is a South African Real Estate Investment Trust (REIT) established in 1956, which today boasts a portfolio of more than 320 properties valued at R11.8 billion and covering a total GLA of 1.7 million square metres. The group is one of the largest owners of property in and around the Pretoria and Johannesburg CBDs, owning around 180 properties within these two nodes.

  • Throughout its 60 year history, the company has unlocked value by redeveloping and refurbishing under-utilised properties, often through conversion from offices into residential and mixed-use buildings. The portfolio has a large exposure to retail assets, with shopping centres and shops contributing 38.9% of total gross rental income in 2015. Residential properties contributed 30%, followed by offices with 21.9% and industrial with 8.3%.Octodec contracts almost 14 000 tenants on a monthly basis, ranging from individuals to government departments, national retailers, small business entrepreneurs and industrialists.

  • Octodec shares have been available to buy on the Johannesburg Stock Exchange (JSE) since 1990. Octodec share price has had a strong history of growth on the JSE.

Octodec Shares Growth Driver

  • Octodec grew rapidly in 2015, growing market capital from R2.4 billion to R6.1 billion and increasing net rental income from R249 million to R819 million. This was mostly driven by a successful merger with other listed REIT Premium, which grew Octodec’s portfolio substantially. Contractual escalations, improved letting and an increased recovery of utility and assessment rates charges also helped boost the group’s performance. The group also enjoyed better buy in from government tenants, an improvement in vacancy levels and a growth in rentals as a result of strategic objectives to improve the quality of properties to attract new tenants.

  • The larger size of the portfolio presented opportunities to chart new waters, allowing Octodec to apply expertise to major developments such as the R347.4 million Centre Forum project in Pretoria.

  • The group has also used innovation to drive growth, developing mixed-use properties to fit the changing needs of inner-city residents, while putting some properties up for sale. Due to the group’s strong presence in major CBDs, the company has significant opportunity and potential for redevelopment, upgrading and assembly. It can also bulk up existing structures and use its network of professional suppliers to explore future development, especially at underused or mothballed properties.

  • Interim data for 2016 indicated a R28 million rise in net rental income, with operating profit increasing by R27 million.

Octodec Group Investor Tip

  • Octodec has forecast a 6% increase in distributions per share in the medium-term. The group has a development pipeline of more than R800 million and looks set to continue its healthy growth in the future. Investors who buy Octodec shares will be buoyed by the strength of the company’s financial results. Although the live online JSE stocks chart shows that Octodec share price has remained stagnant for the past year at around R22, analysts predict that, going forward, Octodec shares could be one of the stand-out buys for property investors.

Octodec Major Shareholders

Old Mutual, STANLIB Asset Management, Public Investment Corporation.

  • Sector


  • Industry

    Real Estate

  • Sub industry

    Real Estate Owners & Developers

How to buy Octodec Group Shares

  • Octodec : How to buy Octodec Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Octodec 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 Octodec Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Octodec 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 Octodec 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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<a href="https://www.sashares.co.za/octodec-shares">Credits: SA Shares™</a>
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