Our opinion on the current state of SAFARI(SAR)

Safari (SAR) is a real estate investment trust (REIT). The company owns seven operational properties in South Africa—eight retail outlets and one daycare center—with a total value of R3,46bn and a vacancy rate of 3,03%. Six of the seven retail outlets are in Gauteng. The group's gross lettable area (GLA) in South Africa is 175,167 square meters, with arrears of 2,2%.

The share is thinly traded, with many days where there is no volume.

On 18th August 2021, the company gave an update on the impact of the unrest and looting. It said, "Nkomo Village Centre in Atteridgeville and Denlyn Centre in Mamelodi suffered minimal damage, while only Thabong Centre in Sebokeng suffered structural damage. Nkomo Village and Denlyn Centre were closed for two days to effect necessary repairs. Thabong Centre partially opened on Friday 6 August 2021, with the majority of its tenants commencing with trade. The Company has registered a claim with its insurers for the damages and also a claim for loss of rental income due to business interruption."

In its results for the six months to 31st December 2024, the company reported operating profit up 9% and headline earnings per share (HEPS) of 33,3c compared with 32,7c in the previous period. The company said, "During the period under review, operating profit saw a healthy increase, primarily driven by improved occupancy rates and strong performance at Platz am Meer."

We see this share as good value at current levels, although trade in the share tends to be patchy. It only has R45,000 worth of shares changing hands on average each day, which adds to its risk.