Exemplar currently owns a portfolio of 22 retail assets across five provinces, exclusively in the township and rural retail sector. As a result of the location of these assets, a number of tenants within the portfolio are deemed as ‘essential services’ and were thus able to trade throughout the lockdown period.
“While these are not the results we anticipated, we are still immensely proud of what the company has achieved in this difficult economic environment,” explains CEO of Exemplar, Jason McCormick.
“No-one could have predicted the challenges we would have to face in 2020 but we have managed to maintain the growth of the portfolio and ensure the job security of our employees.”
The company has declared a distribution of R116.9 million for the 6 months ended 31 August 2020, equating to 35.96 cents per share.
The REIT has provided rental assistance to the value of R28.5 million and anticipates that vacancies will be at a comfortable 3.4% by the 2020 Festive Season.
“The final quarter of the year holds a number of opportunities for us as we will be acquiring a 50.1% stake in the newly developed Mall of Thembisa. While the deal is still subject to JSE and Competition Commission approval, we are confident that this will be a phenomenal addition to the Exemplar portfolio.”
The commencement of construction of Mt Frere Mall, a green-fields development in the Eastern Cape, marks the evolution of Exemplar’s acquisition strategy. “Whilst our initial strategy was to only acquire completed, income-producing properties, this project sees our involvement from the development stage, with the view to delivering greater returns for our shareholders,” ends Jason.
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