File photo: BLOOMBERG/BRYAN VAN DER BEEK
File photo: BLOOMBERG/BRYAN VAN DER BEEK

Sharia-compliant Oasis Crescent Property Fund cut its dividend 4.3% to 52.6c a share in the six months to end-August, partially due to marketing and security costs as it seeks high-quality tenants.

The group’s net asset value per unit rose 3.6% to R22.45, with the company saying that investments in marketing and security for higher-quality tenants reduced distribution by 1.2c per share.

Sharia-compliant funds to adhere to Islamic law, and avoid investments into areas linked to, for example, gambling, alcohol or weapons production.

Oasis has a portfolio of R1.2bn, with its direct property portfolio focused primarily on the Western Cape, and the industrial and logistics sector.

The company has a “low-risk philosophy” which it says has paid off given the weak economic environment, weak property fundamentals, and high interest rates.

It said after markets closed on Tuesday the Fund had delivered total return to unitholders of 6.6%, which compared favourably to a 2.7% fall for the JSE property index.

The company’s little-traded share was at R21.25 on Tuesday, having risen 1.19% so far in 2019, compared to a 4.09% fall in the JSE property index.

gernetzkyk@businesslive.co.za