Equites listed on the JSE in June 2014. The REIT’s strategic mandate is to focus exclusively on logistics properties, particularly “big box” distribution, and since listing the property portfolio has grown rapidly and diversified into over 50 assets located in South Africa and the UK, at a total value of R12bn at FY19. Equites will look to continue to grow its portfolio in its core markets through both acquisitions and developments. Property and asset management is conducted internally.
The ratings could improve on the back of sustained sound rental and cash flow growth together with enhanced scale and greater geographic and tenant diversification and/or improved earnings-based credit metrics. Conversely, If the REIT embarks on more aggressive financial policies, and/or if the portfolio quality declines, such that credit metrics weaken, there could be downward pressure on the ratings.