Delta Property Fund, which has a mostly government tenant base, has opted to hold on to its dividend for its year to end-February due to uncertainty caused by the Covid-19 pandemic.
Due to the pandemic’s fluid nature the outlook remains highly uncertain, the group said, and there could be further lockdowns, as the virus is only expected to peak in September, the group said.
Distributable earnings per share for the year to end-February fell 38.1% to 45.69c, with Delta reporting increased vacancies and rental reversions amid SA’s recessionary economy.
The group, which has about 714-million shares in issue, had previously paid a final dividend of 15.99c per share.
Delta had a portfolio of 102 properties valued at R10.6bn at end-February, with national government departments its largest tenant category by revenue, followed by provincial government departments.
Due to the group’s primarily government tenant base, collections have been resilient, the group said.
Delta collected more than 80% of its monthly billings for April and May this year and expects to collect a further 10% once its sovereign tenants return to work after the lockdown, it said.
“There is a risk associated with our retail and non-government tenants of approximately 10% of monthly billings, and we continue to engage on an individual basis with these tenants to assist were possible to ensure their sustainability,” the statement reads.
• Update: June 15 2020
This article has been updated with additional information throughout.
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