Picture: THINKSTOCK
Picture: THINKSTOCK

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RESILIENT real estate investment trust (Reit) expects to boost its dividend by up to 26% for the second half of its financial year, thanks to the effects of capital raisings and exposure to offshore property.

Resilient, formerly called Resilient Property Income Fund, was one of the strongest performers last year, achieving a total return of 43%, according to Catalyst Fund Managers’ December SA report.

The company said the results reflected the effect of capital raisings, particularly the rights issue last June, which reduced the cost of funding, the decline in the value of the rand and a solid performance by the property portfolio.

Analysts expect Resilient, which along with its strong offshore component, focuses on shopping malls outside main metropolitan areas, to excel this year. "Resilient has again revised up their growth estimates," Investec Asset Management portfolio manager Peter Clark said.

"The high growth is impressive. The growth has largely been driven by offshore investments where rand weakness has boosted growth, as well as additional external growth driven from issuing cheap equity," Mr Clark said

Jay Padayatchi, executive director at Meago Asset Management, said Resilient offered a "combination of potential kickers over the last reporting period". These included an extremely conservative interest rate hedging strategy.