DELTA Property Fund managed to reduce its full-year loss to R456.11 million for the year to end February, down from a loss of R940.29m compared to last year despite facing corporate governance challenges and significant macro-economic constraints as a result of the Covid-19 outbreak.
The real estate investment trust (Reit) had a tough year after former chief executive Sandile Nomvete resigned in August following allegations of fraud and the group appointed Sibongile Masinga as an interim chief executive.
In the long-awaited results published at the close of the market on Wednesday, the group said the 2021 financial period was a watershed year for the group.
“Corporate governance challenges and significant macro-economic constraints as a result of Covid-19 hard economic lockdowns culminated in several far-reaching, but positive changes in the group. Although still at an early stage, the company has been stabilised and key performance indicators are starting to track in the right direction, underpinned by a defensive portfolio,” the group said.
The group said it was hopeful that the JSE would reinstate trading of its shares after they were suspended from trading by the bourse in December
last year after the delay in publishing its results for the year to end February 2020.
“The company is engaging with the JSE to reinstate the trading of Delta’s shares on the main board of the exchange,” the group said.
This comes after the group released all the outstanding financial results, including for the year to end February 2021.
The group said corporate governance was bolstered considerably during the reporting period with the appointment of new members to its board, and with the board driving a step-change in the group’s performance with the support of the new interim and permanent executive leadership team.
In the results, Delta’s SA Reit funds from operations, previously distributable income per share, amounted to 31.33 cents a share compared to 34.98c reported last year and basic and diluted loss a share amounted to 63.63c compared to a loss of 131.02c reported a year earlier.
The group said the impact of Covid-19 during the reporting period was less than expected.
“Assistance in the form of rental deferments to the amount of R6.2m was provided to predominantly smaller retail tenants on a case-bycase basis. Depending on the impact of third-wave infections at the time of writing, this amount is not expected to be significant in the current reporting year,” the group said.
Looking ahead, group said its board was of the view that given the significant headroom in the fair value of the assets over the fair value of the liabilities, the group and company remained solvent as at the end of February and at the date of this report.
“The ability of the group to repay debt as it becomes due is dependent on the timing and quantum of cash flows from operations according to forecasts prepared by management, including scenario analyses, the ability to realise cash through the sale of properties identified as non-core to the business and the ability to extend loan facilities beyond scheduled maturity dates,” the group said.