Delta Property warns of first dividend trim
Deal delays and state’s short-term leases worsened challenging six months for the property fund, says CEO Sandile Nomvete
Delta Property Fund has warned investors that its dividend will shrink for the first time, as it struggles to get the state to sign long-term leases. CEO Sandile Nomvete said the company, which released financial results for the year to February 2018 on Monday, had been held back by many delays that were out of its control, and that it needed more certainty to appease investors. “It was a very challenging past six months. Our continued focus on property fundamentals paid dividends as we renewed 93,144m² of existing leases and signed 53,774m² new leases,” Nomvete said. The company’s weighted average lease term had been weak for two years and Nomvete and his team were trying to get tenants from the government to sign longer-term leases and to pay escalations. As much as 77.9% of the group’s total revenue came from sovereign tenants in the reporting period. As much as 21.6% of sovereign leases were month-to-month compared with 26.8% in the comparative 2017 period. “We are trying to get...
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