Delta Property Fund sees 8% increase in distribution per share
Delta Property Fund grew its distribution per share 8% in the year to February, and managed to renew 80% of its 2015 expiring leases. The black managed JSE listed real estate investment (Reit) is focussed on long-term sovereign underpinned properties. The company also acquired R1.2bn of government tenanted assets from Redefine Properties.Delta entered into an agreement with Redefine for the acquisition of its government property portfolio consisting of 15 properties and a total gross leasable area of 191,668 m² for R1.25bn at a property yield of 13.27%.It issued 155-million shares valued at R1.2bn to Redefine in April. A remaining 7-million shares will be issued once the conditions precedent for the purchase of a final property have been met."Contractual rental income increased 29.8%, benefiting as much 7.8% from weighted average rate escalations and 13.5% from new acquisitions. Net cost-to-income ratio was impacted by new acquisitions, increasing from 10.2% to 12.2%, and is expecte...
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