Tower Property Fund Limited. JSE: TWR

Tower Property Fund shares

Background of Tower Property

  • Tower Property Fund is a Real Estate Investment Trust owning a diversified portfolio of 50 retail (49%), office (43%) and industrial (8%) properties in the Western Cape, Gauteng and KwaZulu-Natal, as well as in Croatia. The group’s portfolio is valued at approximately R5 billion.

  • Flagship properties include the Cape Quarter retail and office park in Cape Town and the Upper Grayston Drive Office Park in Sandton.

  • Tower’s history stems back to 2012, when it was incorporated as a private company. Today, the group is a public company, with Tower Property shares listed on the Johannesburg Stock Exchange (JSE), giving investors an opportunity to buy into a high-quality portfolio of assets.

Tower Property Shares Growth Driver

  • The company aims to provide investors with strong income stream and capital value returns, achieved through active property asset management and cost-effective ‘greening’ which results in reduced operational and tenant occupation costs. Further attractiveness is added by exposure to Croatia, which accounts for 31% of the company’s portfolio value. The company mainly aims to buy well-located, mediumsized properties valued at between R80 million and R300 million.

  • The group’s latest financial data for the 2016 year highlighted good performance, with revenue increasing by 52% to R376 million and net operating profit by 50% to R302 million. The group invested capital to buy four properties valued at R728 million, including the premium grade VMD KVART office property in Zagreb, Croatia for R320 million. In line with its offshore expansion drive and strategy of securing a Euro-based income stream, Tower has gone on to buy four more retail properties in Croatia. Unusually, lease escalations are expected to exceed inflation costs in Europe, rising at between 4% and 5% per year, which should boost Tower’s profits.

  • Active asset management reduced operating costs, particularly through the successful greening programme. Selected properties are also being put up for sale, with five non-core properties being offered to interested buyers, with a value of R200 million. Proceeds will be used to reduce debt and repurchase shares given their attractive yield.

  • The board has forecast increased growth in earnings going forward, due to a number of development initiatives locally, the incorporation of the offshore acquisitions and a strong growth pipeline in South Africa and Eastern Europe.

Tower Property Group Investor Tip

  • The live online JSE stocks chart shows that Tower Property share price has dropped off significantly of late, which is surprising considering the company’s strong financial results and high-quality portfolio. Exposure to the South African property sector
    remains risky, but the bold expansion into Europe should provide a good rand hedge for investors looking to buy Tower Property shares. Investment analysts agree that Tower Property shares are undervalued and have potential for good upside growth. The shares offer investors an interesting buy which warrants more attention than the company is currently getting.

Tower Property Major Shareholders

Coronation Fund Managers, Allan Gray Asset Management, Stanlib Asset Management, Nedbank Group

  • Sector

    Real Estate

  • Industry

    Real Estate
  • Sub industry

    Real Estate

How to buy Tower Property Group Shares

  • Tower Property : How to buy Tower Property Group Shares Online

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

  • Here are the steps you must follow to Buy / Tower Property 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 Tower Property.
    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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