viewGrit Real Estate Income Group

GRIT Real Estate - The next level

GRIT Real Estate - The next level
Year-end update - Solid performance

GRIT Real Estate Income Group (LON:GR1T), the leading pan-African real estate company, has released a trading update for its financial year ending June 2019. The company is on track to deliver its targeted 12% total shareholder return for FY June 2019, and an increased dividend. Furthermore, the occupancy rate stands at 97.2%, and 95% of expiring Gross Lettable Area has been renewed or replaced.

Against a mixed backdrop, with headwinds from EUR/USD translation effect and some weakness in the African retail sector, this performance fully delivers on the expectations set out at the time of the London listing in August 2018.

Opportunities to expand the portfolio

The company states that it has an identified pipeline of investment opportunities totalling US$600m, from existing tenants and other multi-nationals operating in Africa. This pipeline compares with an existing portfolio of US$796m (December 2018), i.e. a near doubling of the asset base.


The statement indicates that the company will consider options for financing these investments, in the short and medium term.

Measures to further enhance returns

The company has also outlined initiatives to drive incremental returns on investment, which could enable the company to exceed its 12% TSR target in future years, in our view. Measures include: 1) Participating in risk-limited development opportunities, as a route to enhancing NAV growth without impacting the dividend. 2)Opportunities to provide Asset Management services internally and to external property owners, to drive fee generation and to reduce the group's operating cost ratios.


GRIT offers a 9.2% dividend yield, and the prospect of good ongoing NAV growth. We believe that the FY June 2019 performance also demonstrates the robustness of GRIT's business model.

Year end Dec 31 2017 2018 Current 2020
Income producing assets 488.5 642.3 816.6 841.3
Adj. EPRA net income 5.6 22.8 37.2 38.9
Adj EPRA EPS (cents) 5.1 11.3 12.4 12.9
DPS ( cents) 12.1 12.2 12.4 12.7
Dividend yield 8.8% 8.9% 9.0% 9.2%
EPRA NAV / share ( cents) 137.4 145.7 149.7 153.5
Price / NAV ( x) 1.0 1.0 0.9 0.9

Quick facts: Grit Real Estate Income Group

Price: 1.16 USD

Market: LSE
Market Cap: $354.44 m


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Grit Real Estate Income Group named herein, including the promotion by the Company of Grit Real Estate Income Group in any Content on the Site,...



Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...


Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


Performance demonstrates 'robustness' of Grit Real Estate Income's business...

Capital Network analyst Ed Stacey talks through Grit Real Estate Income Group Ltd's (LON:GRIT) trading update for the year to June 2019. He says the company's on track to deliver its targeted 12% total shareholder return for the year and an increased dividend.

on 27/6/19

4 min read