Castleview Property Fund Limited, a leading property holding and investment company listed as a Real Estate Investment Trust (REIT) on the JSE’s AltX, has unveiled its reviewed condensed interim financial statements for the twelve months ending February 28, 2023. The statements reveal an exceptional surge in financial performance and a remarkable transformation of Castleview’s portfolio, positioning the company as a prominent player in the global property market.
With a revenue growth rate of 1,773.31% compared to the previous year, Castleview recorded a staggering revenue of ZAR 1.08 billion during the twelve-month period. This exponential increase highlights the company’s ability to seize lucrative investment opportunities and capitalize on its expanding market presence.
While Castleview experienced a decline in headline earnings per share, which stood at 18.98 cents, the company demonstrated its robust financial position with a substantial rise in earnings per share, reaching an impressive 386.54 cents, representing a remarkable growth rate of 664.37%. The acquisition of the I Group portfolio played a pivotal role in driving Castleview’s profitability and shareholder value.
Castleview Property Fund’s net asset value per share surged by 87.43%, reaching 863.91 cents, underscoring the positive impact of the company’s strategic investments and the successful diversification of its property portfolio. The acquisition of a diversified range of South African and Polish direct assets, coupled with South African indirect assets, has positioned Castleview as a mid-tier REIT with a net asset value of ZAR 8.1 billion and total assets amounting to ZAR 22.1 billion as of February 2023.
During the twelve-month period, Castleview undertook a significant transformation, transitioning from a direct South African property owner to a global property owner with investments spanning various property sectors. This transformation was spearheaded by the successful acquisition of the I Group portfolio in September 2022, which brought high-quality and well-located assets into Castleview’s fold.
The company’s exponential growth in total assets and market capitalization, amounting to ZAR 5.7 billion based on a share price of ZAR 6.10, reflects the confidence and trust investors place in Castleview’s strategic vision and ability to generate long-term value.
Castleview’s financial performance was also bolstered by income derived from equity accounted investments, which amounted to ZAR 401.5 million. The group reported a profit of ZAR 2.1 billion, primarily driven by a bargain purchase gain recognized during the period. Excluding this gain, the company’s profit would have reached an impressive ZAR 386.8 million.
The company’s finance costs increased in line with its expanding operations, totaling ZAR 437.1 million, partially attributed to rising borrowing costs resulting from interest rate hikes in South Africa and Europe. Castleview diligently manages its interest rate risk through effective risk management strategies, including fixed or hedged debt instruments.
In light of these outstanding results, Castleview’s board has resolved to declare dividends on an annual basis, with the first dividend announcement expected after the publication of the results for the 13-month period ending March 31, 2023. The board has chosen to withhold an interim distribution for the twelve-month period ending February 28, 2023, in alignment with this revised dividend declaration policy.
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