Newpark swings into a loss as Covid-19 pressures tenants
Distributable earnings per share for the six months to end-August fell 19.3%, with the group receiving less rent than it budgeted for
Property group Newpark, which includes the JSE’s head office in its portfolio, swung into an interim loss after it provided rental relief in the midst of Covid-19 and raised credit-impairment provisions.
Distributable earnings per share to end-August fell 19.3% to 19.63c, with the group reporting a headline loss of R9.63m, from earnings of R18.4m previously.
Rental collections for the first seven months of the new financial year were 79% of that originally budgeted, Newpark said, while it also raised its credit-impairment provision by R3.2m.
Group vacancies increased to 13.7% at the end of August, from 11.9%in the prior comparative period. Newpark had a portfolio of four buildings worth R1.38bn as of the end of August.
“Assuming no further material coronavirus-related impacts on tenants, the board expects this percentage to increase as we progress toward a normalised trading environment in due course,” the statement read.
In morning trade, the group’s little-traded share was unchanged at R4, having fallen 30.43% so far in 2020.
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