Picture: ISTOCK
Picture: ISTOCK

Delta Property Fund, which is mainly in the government leased office space, on Monday, reported a 7.1% rise in total distribution to 97.24c in year to end-February from a year-earlier period.

Contractual rental income and property operating expenses increased by 32.1% and 44.1% respectively, largely influenced by the growth in the portfolio due to transfer of previous acquisitions.

In 2015, the fund acquired a portfolio of properties from Redefine, which were transferred in 2016.

Delta’s portfolio of R11.4bn consists of 112 properties with a total gross lettable area of 981,777m², which includes assets held-for-sale comprising 18 properties.

In terms of the tenant breakdown by revenue, national government made up 41.1%, provincial government 19.8 %, state-owned enterprises around 10.5% and local government 5%.

Delta forecast earnings to be flat in the 2018 financial year due to one-off lease adjustments being traded off for longer-term leases and the disposal of noncurrent assets held-for-sale.

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