Download Rockcastle global real estate company R ockcastle Global Real

ROCKCASTLE GLOBAL REAL ESTATE COMPANY
R
CEO
Spiro
Noussis
ockcastle Global Real Estate
Company is an internally
managed global real estate
investment company that
was established in Mauritius and is
dual listed on the Mauritian Stock
Exchange (SF.M) and the
Johannesburg Stock Exchange.
Rockcastle is a hybrid real
estate vehicle which has a broad
mandate. Its investments may
comprise global real estate
securities, unlisted or over the
counter real estate securities, other
instruments derived from such real
estate securities, and direct
property assets (which the
company will both own and
manage).
The latter include commercial
property development projects,
existing properties and real estate
companies.
Rockcastle receives regular
distributions from its investment
portfolio which it aggregates and
pays over to investors as dividends
on a semi annual basis.
At end-December 2015, the
dividend declared was US4.63c
and the net asset value per share
(NAV) was S1.56. The loan to value
ratio was 40.2°/., (June 2015 —
46.4%). Management's target
gearing ratio for the company is
between 35"/., and 50%.
Management has indicated they
expect a decrease in borrowing
rates as the company- expands.
The company is headed by
Spiro Noussis, a chartered
accountant by profession with
experience in private equity and
investment management.
Rockcastle benefits from the
management expertise of the
Resilient stable of companies,
which include New Europe
Property Investments (Nepi) and
Fortress Income Fund.
Rockcastle's listed property
portfolio is valued at S1.8bn as at
end December 2015 and its direct
property investments at S355m.
Rockcastle's listed property
portfolio comprises globally listed
Reits, with the majority of the
exposure to the US, UK and
European real estate markets.
The listed security investments
are exposed to the majority of the
property sectors with a 58% bias
towards the retail sector in
developed markets.
The company's top five holdings
as at end December 2015 were
Simon Property Group (US S359m),
Hammerson (UK S349m), Prologis
(US - S214m), Avalonbav
Communities (US S176m) and
Unibail Rodamco (Europe - S172m).
Over the past 18 months the
company has implemented its
strategy to expand its direct
property investments in the Polish
market with the purchase of Platan
Shopping Centre (C51m), Karolinka
Shopping Centre (C145m), Pogoria
Shopping Centre (C74m) and more
recently Forum I.iberec Shopping
Centre
(€8()m). The company has also
significantly reduced its African
exposure with the sale of its
Zambia assets, namely Kafubu
Mall and Mukuba Mall.
Management has targeted an
even split between listed property
investments and direct property
investments. Therefore it is likely
that Rockcasde will rotate out of
lower yielding global Reits into
higher yielding [■astern European
direct property assets.
Over the past year the company
has broadened its geographical
exposure from Poland to include
other Central and Eastern
European countries such as the
Czech Republic and
PRICE VS SECTOR
(JSE)
Hungary.
The Central and Eastern
European property market has
been in focus over the past 12
months, not only from
international investors but also
from SA listed property
companies.
In the past 12 months 1 lyprop,
MAS, Attacq. Pivotal, Accelerate
and Redefine all announced deals
or potential deals in the region.
Rockcastle's value proposition
hinges on management's ability to
recycle from lower yielding listed
property investments into higher
yielding direct Eastern European
property investments.
TOP FOUR
SHAREHOLDERS
Shareholder's
% Share
name
held
Resilient Properties
17.2
Fortress Income 2
16.1
Pangbourne
6.0
That the company has already
partially implemented this strategy
is evidenced by the acquisitions
over the past 12 months. Rockcastle
is also continually expanding its
team in Poland and this will further
assist in implementing this strategy.
Rockcastle's share price has
come under pressure in recent
weeks but the stock is still up an
impressive 29°/o for the 12 months
ending lune. That's well ahead of
the SA listed property index's
5.5% rise over the same time.
Curwin Rittles Investment
analyst, Catalyst Fund
Managers
GEOGRAPHICAL
SPREAD
% per country
Properties
2014 20)5 2016
SOURCE: IRESS
Capital Propfund
5.8
• As at June 30 2015
(As at March 31 2016)
Who manages the lund? Internal Number of properties in the lund 6 with 2 under construction (as at June 30 2016)
Property valuation
$522m (as at June 30 20)6)
Market capitalisation
$2.3bn
Annual trading volume as % of units in issue
19.9%
Net asset value per unit
$1.62
Price per unit at date
R36.06
Premium to net asset value
50.7%
Historic(%)
3.7%
Gearing (%)
38.2%
Name of the company
Rockcastle Global Real Estate Company Ltd
Name of fund
Rockcastle Global Real Estate Company Ltd
JSE code
ROC (SEM code Rock.NOOOO)
Head of fund and title
Spiro Noussis (CEO)
Contact person
Megan Krause
Tel no+00 <44) 208 546-0133 Registered address Level 3, Alexander House, 35 Cybercity, Ebene, 72201, Mauritius
Email address
info.rockcastle<a>rockcastleglobal.com
Website address
www.rockcastleglobalre.mu
■ Poland - 66.67%
■ Czech Republic - 16.67%
■ Zambia - 16.66%
SECTORAL SPREAD
by gross rentals
■ Retail-100%
SOURCE: ROCKCASTLE GLOBAL REAL ESTATE