Our opinion on the current state of SA-CORP(SAC)SA Corp (SAC) owns a group of 199 industrial, retail, storage, residential, and office properties in South Africa, plus a 50% stake in a joint venture in Zambia with three properties. The bulk of this portfolio is in retail (43%) and industrial (28%).
The company has been facing challenges across its portfolio, particularly in its office and industrial properties, where it has been experiencing negative rental reversions. It is also exposed to the poor economic conditions in South Africa. Various offers have been made to buy out the company, but these have been rejected by the board.
The new (and returning) CEO, Rory Mackey, has announced plans to turn the company around over the next year by exiting the office market and concentrating on its residential and retail portfolio. On 15th March 2023, the company announced that it had made a firm offer to acquire the entire issued share capital of Indluplace (ILU) for R3.40 per share, which would result in the delisting of that company. On 18th July 2023, Indluplace announced that the deal had been approved, and so ILU is expected to be delisted in due course.
In its results for the year to 31st December 2024, the company reported distributable income up 5.1% and like-for-like net property income up 6.7%. Headline earnings per share (HEPS) was 26.12c compared with 22.98c in the previous period. The company said, "Net asset value per share of 443 cents (2023: 439 cents). Distribution declared of 24.37 cps at a 90% payout ratio (2023: 23.18 cps at a 90% payout ratio)."
Technically, the share is in an upward trend and should continue to perform well.
