Property group Newpark, which includes the JSE’s head office in its portfolio, swung into an interim loss after it provided rental relief in the midst of Covid-19 and raised credit-impairment provisions.
Distributable earnings per share to end-August fell 19.3% to 19.63c, with the group reporting a headline loss of R9.63m, from earnings of R18.4m previously.
Rental collections for the first seven months of the new financial year were 79% of that originally budgeted, Newpark said, while it also raised its credit-impairment provision by R3.2m.
Group vacancies increased to 13.7% at the end of August, from 11.9%in the prior comparative period. Newpark had a portfolio of four buildings worth R1.38bn as of the end of August.
“Assuming no further material coronavirus-related impacts on tenants, the board expects this percentage to increase as we progress toward a normalised trading environment in due course,” the statement read.
In morning trade, the group’s little-traded share was unchanged at R4, having fallen 30.43% so far in 2020.
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