Rebosis downbeat over some tenants despite rise in rent collections
Group braces for fallout from Covid-19 pandemic after pressure from weak economy in six months to end-February
Some tenants may not fully recover as Covid-19 continues to batter the property and retail sectors, diversified property group Rebosis said on Monday.
Covid-19 has affected collections in the group’s retail portfolio, with Rebosis reporting collection rates of 73%, 78% and 88% in April, May and June respectively.
Though it anticipates higher collection rates in future, “the food, beverage, services and entertainment sectors may not recover”, the group said.
“Our objective will be to continue to assist the small businesses to ensure continuity into the future through sensible rent concessions,” Rebosis said.
The group, which has a portfolio of about R14.1bn, said SA’s recessionary economy had already put it under pressure in its six months to end-February, when it experienced pressure on rentals.
The group’s loss declined slightly to R1.8bn, from R2bn previously, and Rebosis has opted not to pay an interim dividend, having also not paid one previously.
Rebosis owns five malls, including the Baywest Mall in Port Elizabeth, saying on Monday comparable net property income in its retail portfolio fell 4.7% in its half year to end-February.