BI-ANNUAL DASHBOARD

Source: Bloomberg & Catalyst Fund Managers
Data is as at 31 December 2021

The SAPY and ALPI delivered strong total returns of 36.9% and 38.6% respectively for the year ended 31 December 2021 relative to equities (29.2%), bonds (8.4%) and cash (3.8%). SA Listed property also managed to outperform other equity sectors for the year relative to the underperformance experienced in 2020.

The best performing companies for the year were Dipula-B, Texton and Arrowhead B.

• Dipula is proposing an internal restructure in order to achieve a simplified share structure consisting of a single class of ordinary share. Currently Dipula has an A and B share whereby the A shareholders have a preferential right to the distribution declared with growth in the distribution capped at the lower of CPI or 5%. The B shareholders then receive the residual. The current proposed swap ratio is 2.4 DIB shares per DIA share.
• Texton is a Real Estate Investment Trust with a portfolio of 42 properties valued at R3.6bn. During the year they were able to successfully deleverage with the LTV reducing from 46% to 32% as at the end of June 2021. As a result of the improved liquidity, Texton declared a dividend of 37.47 cents per share (no dividend in the prior period).
• Arrowhead is the subject of a potential merger with Fairvest (FVT) through a scheme of arrangement. The proposal is for Arrowhead to allot and issue 0.54054 new AHB shares for each Fairvest share.

Some of the worst performing companies in 2021 were Capital & Regional, Fortress A and Fortress B.

• During the year Capital & Regional undertook a capital raise in order to alleviate the high gearing in the fund. The equity raise was underwritten by Growthpoint (the largest shareholder) and resulted in the LTV reducing from 61% to 50% (based on the Group’s Investment assets and Central Operations).
• Fortress has a dual share structure with the A units receiving preferential rights to the distributions declared but growth is limited to the lower of CPI or 5%. The B shares would then receive the residual. Fortress has provided guidance for the year ahead (June Y/E) and forecast that the distributable income for the first half will be below the FFA dividend benchmark but expected to exceed the benchmark in the 2H. Accordingly, no dividend is expected to be paid at the interim reporting period.

Refer to Annexure for the full list of Individual Stock Performance for the year-to-date information as at 31 December 2021.