Struggling Rebosis signs leases with government tenant
Reit’s share price climbs after announcement it has renewed contracts with the department of public works
Struggling Rebosis Property Fund is at last making inroads and signing leases with a government tenant, which should help bring stability to the income streams of the JSE-listed black-owned and managed fund, it said on Tuesday. The real estate investment trust’s (Reit’s) share price climbed 6.15% on Tuesday to close at R1.38, its best performance in nearly three weeks, after it announced it has renewed nine leases with the department of public works, covering a total gross lettable area of 62,354m². The department has been slow to renew leases with its landlords including listed groups such as Rebosis and Delta Property Fund. Government tenants have tended to opt for leases with short maturities ranging from a few months to a year, which have placed strain upon Rebosis and Delta because the companies consequently cannot provide lenders and investors with accurate and predictable earnings forecasts. Rebosis, which was listed by CEO Sisa Ngebulana eight years ago, has been under p...
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