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Grit Real Estate Income Group: DEEP DIVE

GRIT Real Estate Income well placed to deliver attractive shareholder returns

The company expects to capitalise on the “significant potential growth” from its unique high-quality portfolio of properties
OVERVIEW: GR1T The Big Picture
GRIT has property investments spread across seven African countries
  • GRIT on track to deliver annual rental growth

  • Firm continues to add high quality assets to its portfolio 

  • Plans to move to premium segment of the London market by the end of 2019


What GRIT Real Estate Income does:

GRIT Real Estate Income Group Ltd (LON:GRIT) is an African-focused property trust with investments spread across seven countries: Ghana, Botswana, Mauritius, Morocco, Mozambique, Kenya and Zambia.              

Offices, retail and hospitality make up 80% of its 25-strong portfolio of real estate assets.

GRIT listed on the standard market in London last July, raising US$132.2mln, and intends to move to the premium segment of the market by the end of 2019. 

Portfolio holdings:

Some assets include the Mukuba Mall in Zambia, the Vodacom Building office in Mozambique, the Buffalo Mall in Kenya and the Capital Place commercial block in Ghana.

In Mauritius, GRIT owns the Barclays House office complex and Canonnier Beachcomber Golf Resort & Spa, among others.

Inflection points:

  • GRIT expects to annual rental growth as well as possible capital value increases through yield compression after a solid first half.
  • The group delivered a near 26% rise in gross rental income in the first half of the year to US$18.7mln, with distributable earnings flat at US$6.06c (US$6.07c).
  • The company expects its vacancy rate to improve significantly when the refurbishment of the Anfa Shopping Centre in Casablanca is completed in the middle of this year.
  • In March, GRIT announced that it had acquired an additional 25% stake in the Mukuba Mall in Zambia in a US$8.2mln deal, taking its total holding to 75%.

Blue Sky:

Chief executive Bronwyn Corbett said he believes the company is well placed to capitalise on the “significant potential growth” from its unique high-quality portfolio of properties as the company continues to meet its targets of annual income distribution and total annual return growth.

“Through opportunities presented by the group's recent LSE listing, the company is well positioned to continue to add high quality assets to its portfolio selectively, focused on assets leased to multinational corporates and attracting hard currency rental streams, ensuring that potential investments are value accretive,” she said in the half-year results statement.

“The company is well placed to continue to benefit from its strong position in the market and deliver attractive returns to our shareholders over the short and longer term."

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Grit Real Estate Income Group Timeline

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