Grit Real Estate Income Group - Update research from QuotedData
21st December 2022
Going for growth
Pan-African property company Grit Real Estate Income Group (Grit) is on track to complete the acquisition of a controlling stake in developer Gateway Real Estate Africa (GREA) by May next year, which would unlock considerable potential for net asset value (NAV) and income growth for the fund.
GREA's attractive pipeline of development projects includes diplomatic housing let to the US government across the continent. Consequently, the composition of Grit's portfolio will change dramatically over the next two years, with corporate accommodation exposure growing materially and the US Embassy becoming Grit's largest tenant. Industrial and data centres are also prominent in the pipeline, while sales of properties in the retail and hospitality sectors will further shape the portfolio towards favourable asset classes.
The recent major restructuring of its borrowing facilities (see page 18) and plans to further reduce its loan to value (LTV - borrowings plus cash as a percentage of portfolio valuation) have put the group on a firm financial footing. Meanwhile, the re-establishment of its dividend track record should contribute to a re-rating of its share price (its shares currently trade on a 49.5% discount to NAV).
Full research:
https://quoteddata.com/research/grit-real-estate-income-group-growth-qd/
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