Our opinion on the current state of CVW

Castleview (CVW) is a real estate investment trust that owns two properties - a shopping mall in Port Elizabeth in the Eastern Cape, "Pier 14" which the company describes as a "themed lifestyle center" with 75 stores and a gross lettable area (GLA) of 30381 square meters and Cravenby Shoprite which has a GLA of 3301 square meters. It intends to buy other retail centers throughout South Africa. In its results for the 13 months to 31st March 2023 the company reported revenue of R1,245bn and headline earnings per share (HEPS) down 60,85%. The company's net asset value (NAV) increased 85,58% to 855,38c per share. The company said, "The period under review was characterised by the transition of the Company from a direct, South African property owner to a global property owner, diversified across various property sectors through the acquisition of the I Group portfolio in September 2022 and the successful acquisition of controlling stakes in both Emira and Transcend". In a trading statement for the six months to 30th September 2023 the company estimated that the diviedn would be 10,676c per share. The share has no recorded trades on the JSE. Before it can be of interest to private investors it will have to achieve some scale. The company's shareholders approved an offer by Growthpoint to buy 51% for R2,9bn on 26th November 2019. We expect that once this deal is done the company may be delisted. On 23rd February 2023 the company announced that it had sold 47,8m shares for R6.48 per share to raise R310m.