Growthpoint collected less than half of retail rent in April
SA’s largest property company says it only took in 47% of retail rent in April, when it provided almost R100m in rental relief to tenants
SA’s largest property company, Growthpoint, collected less than half of its rent from retail tenants in April, when it provided almost R100m in rental relief.
The group, which owns half of the V&A Waterfront, collected 71% of its total rent in April across its portfolio, which declined slightly to 70% in May, largely due to a fall-off in collections from tenants in its industrial and healthcare divisions, according to an investor presentation on the group Growthpoint’s website.
Collection in its retail portfolio, which represents over a third of total billing, increased to 54% in May, from 47% in April.
The group has provided R99.2m in rental relief in April, and R100.2m in May — about 10% of total billing due for those months.
Growthpoint said the V&A Waterfront was “profoundly impacted due to its reliance on tourism and its exposure to the retail and hotel sectors”.
The group’s office portfolio remained resilient, it said, due to a high number of blue-chip tenants. The group collected 92% and 81% of rent from office tenants in April and June respectively.
In morning trade on Monday, Growthpoint’s share price was flat at R12.64, having risen 8.59% so far in 2020, compared to a 46.77% fall in the JSE property index.