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SA Corporate Real Estate Limited. JSE: SAC

SA Corporate shares

Background of SA Corporate

  • SA Corporate Real Estate is a Real Estate Investment Trust and one of the oldest established property funds still operating in South Africa today, with a history dating back to 1995.

  • As of 31 December 2015, the group had a diverse portfolio of 178 properties across the industrial, retail, residential and commercial sectors, primarily in major metropolitan centres in South Africa, with a secondary node in Zambia. The properties cover approximately 1.4 million square metres of lettable space and are cumulatively valued at R12.4 billion. The group also decided to buy into a major investment in the AFHCO Group, which owns 44 properties and increases SA Corporate’s exposure to the inner-city residential sector.

  • By market value, the group’s portfolio comprises 41% retail, 36% industrial, 14% AFCHO and 9% commercial.

  • SA Corporate shares are listed under the Diversified REITs sector of the Johannesburg Stock Exchange with a market cap of over R13 billion.

SA Corporate Shares Growth Driver

  • In 2011 and 2012, SA Corporate set about changing its strategy from putting properties up for sale to improve the quality of its portfolio, to one based around a four-pillar strategy to refine the investment strategy, externalise property management and optimise capital structure. The group broke away from Old Mututal’s institutional management in 2014, deciding to buy into an internal asset management strategy and diversifying into inner-city residential and retail property. This resulted in more profitable performance and a sustained increase in dividends and distributions.

  • The group’s latest financial data shows that the property portfolio increased by R1.7 billion in 2015, as a result of R640.9 million worth of inner-city residential and retail acquisitions and a R1.2 billion upward revision of the like-for-like portfolio due to retail assets under development. Overall, annual growth in distributions has risen from 1.4% in 2011 to 10.8% in 2015.

  • Tough market conditions have however hampered the group’s ability to decrease vacancies and improve SA Corporate share price. Although industrial vacancies have fallen to 0.3%, and retail vacancies to 4.5%, the commercial sector has suffered an 11% vacancy rate. The group is focusing on remaining underweight in the industrial sector. Meanwhile, there has been an increase in vacancies in the AFHCO portfolio, as certain portions of recently-purchased properties are being re-tenanted.

  • The group has decided to focus its future purchase strategy on Gauteng, supporting the higher growth that Gauteng achieves over other regions. Approximately 56% of the portfolio exposure is currently in Gauteng, with an increasing bias forecast in future.

SA Corporate Group Investor Tip

  • SA Corporate share price took a sharp dip on the live online stocks chart in 2015, but SA Corporate shares have rebounded strongly since then, indicating improving confidence to buy the shares. The turnaround strategy seems to have boosted investor sentiment towards the group, and more than R600 million was raised in 2016 through an oversubscribed accelerated bookbuild. The proceeds will be used to invest in the residential sector, which has strong growth potential. SA Corporate shares have changed from a luke-warm buy to a hot one.

SA Corporate Major Shareholders

Government Employees Pension Fund, Stanlib.

  • Sector

    Financials

  • Industry

    Real Estate

  • Sub industry

    REIT

How to buy SA Corporate Group Shares

  • SA Corporate : How to buy SA Corporate Group Shares Online

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

  • Here are the steps you must follow to Buy / Purchase SA Corporate 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 SA Corporate 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)
  • Buy Shares with Confidence

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<a href="https://www.sashares.co.za/sa-corporate-shares">Credits: SA Shares™</a>
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