Specialised residential property fund Transcend has cut its interim dividend by more than a half as it seeks to hold on to cash during the Covid-19 pandemic.

The group cut its distribution per share 60% to about 12.1c for its six months to end-June, when the group swung into a R51.2m loss, from profit of R71.8m previously

The group’s policy is to hedge against a rise in interest rates, and a series of Reserve Bank cuts saw the group taking R71.22m hit during the period.

At the end of June, the group had 23 directly owned properties valued at R2.71bn.

In afternoon trade on Thursday, Transcend’s little-traded share was unchanged at R6, giving it a market capitalisation of R785m.


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