Delta sees good traction with state tenants lease renewals
The property company, which leases mostly to state tenants, has renewed nearly 90,000m² of office space with the department of public works
Delta Property Fund, the group which earns about 80% of its revenue from state tenants, looks set to turn a corner now that it has renewed more than half of its leases with the department of public works.
In recent years many government tenants have been reluctant or slow to commit to new leases and when they have signed them they have tended to want shorter-term agreements , sometimes only a few months long. This has made it harder for Delta and other government landlords to forecast earnings and dividends and to provide accurate lease profiles to banks when seeking funding. Debt has also been secured at higher interest rates for these funds than for their peers.