A real estate group that offers high-yield income potential from investments in Africa
Grit is the only real estate investment group listed on the Johannesburg, London, and Mauritius stock exchanges that focuses on property investments on the African continent. The real estate group provides a stable base for dividend growth, as the rental income from its properties is supported by the long-term leases by multinational blue-chip tenants. These tenants pay mostly in hard currency such as the US dollar and the euro.
With an exceptionally strong management team under the leadership of co-founder Bronwyn Corbett, the group offers a combined six decades of experience in African realty. The company has shown that its strategy of property diversification and focus on counterparty strength is a sound one. This is underlined by its portfolio growth from US$ 210 million in 2015 to US$ 588 million in 2018, when it listed on the London Stock Exchange main board (in July 2018). The diverse portfolio consists of properties spread across Africa and includes multiple asset classes. This helps to diversify the tenant base while it also ensures optimal management of risk. In fact, over 94% of the real estate group’s rental income is in US dollar or Euro. Investors benefit from a superior US dollar-based distribution yield and relatively high total return growth.
Grit operates as a real estate investment group that focuses on properties in African countries that show promising growth and economic strength. With sub-Saharan African countries showing an average of 5% economic growth per year for the past 19 years, the continent provides for sound real estate investment opportunities. Add to this the rapid urbanisation of people in African countries, as well as a fast-growing middle-income class and the demand for shopping centres and modern, offices in convenient nodes is understandable. As a real estate investment group, Grit’s portfolio includes assets in countries ranging from Senegal and Botswana to Morocco, Kenya, Ghana, Mozambique, Zambia, and Mauritius. The group is, furthermore, targeting expansion of its property portfolio to the Seychelles.
The property portfolio includes:
- Retail assets
- Commercial offices
- Corporate accommodation properties
- Hospitality assets
- Light industrial assets
Grit limits its concentration of gross assets to a self-imposed, soft target of no more than 25% for every asset class and operational jurisdiction. Another reason for buying shares in the group is the fact that it has strong leadership and an experienced management team, strongly aligned to shareholders. The current portfolio boasts a weighted average lease term of 4.7 years by blue-chip and multinational corporations including names such as BP, KPMG, ABSA, and Vodacom. Large retail brands such as Carrefour, LC Waikiki, Game and Shoprite are among the anchor tenants at the various shopping malls in the property portfolio.
All of the assets of this real estate investment group are income-generating with superb lease contracts and low vacancies. The diversified nature of the property portfolio and spreading of risk across multiple geographies makes investment in the group a viable option. With strict risk mitigation criteria, Grit ensures that every property in its portfolio delivers sufficient income to the benefit of its shareholders. View the property portfolio and get in touch for more information on buying shares.