Accelerate Property Fund reported a decrease in rental income for the year to end-June, largely due to disposals and reversions in rental income at Fourways Mall.
The company’s rental income decreased by 5.7% to R824m, with net property income also falling 8.3% to R494.7m, the company said on Friday.
Accelerate’s loss after tax widened sharply to R1.27bn for the year, up from a R624.7m loss the previous year, “due to ongoing market pressures and the impact of strategic asset disposals”, the company said.
In line with its strategy, the company disposed of eight assets for R694m and identified further disposals.
Operationally, the fund reduced overall vacancies from 21.1% to 19.4%, with a notable improvement at Fourways Mall, where vacancies dropped from 19% to 13.7%. The rental collection rate was 98.9% despite ongoing economic challenges.
The company did not declare a dividend for the year.
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