File image: James White
File image: James White

Grit nets more than 80% of contracted rent in April, 76% for May

By Edward West Time of article published Jun 4, 2020

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CAPE TOWN - GRIT REAL ESTATE Income Group, a pan-African income real estate company, said yesterday that it had collected more than 80 percent of contracted rent revenues for April, and more than 76 percent for May.

In an update, the group, which invests a diversified portfolio of assets underpinned by mainly dollar and euro denominated long-term leases with multi-national tenants, said it had also collected $3.15million (R54.38m) in prepaid rents for the 2020 calendar year over this period.

Property companies have struggled to collect rents in many countries as the Covid-19 pandemic forced governments to temporarily close businesses, and the retail sector was particularly hard hit.

Grit said short-term concessions, primarily in the retail segment, had been agreed or were being finalised on up to 9percent of Grit attributable contracted rental revenue due for April, and up to 12percent for May.

Short-term payment deferrals had been agreed or were being finalised on up to 16percent of Grit attributable contracted rental revenue due for April and May 2020 (and were therefore due in the company’s next financial year), driven primarily by hospitality sector assets.

Given the potential for slower cash collections due to uncertainty created by the Covid-19 pandemic, the dividend guidance for the current year was revised, and a full-year dividend of at least $8.75cents per share, which equates to 72percent of the level of the prior financial year, was targeted.

The board would monitor the dividend proposition for the year to June 30, with the potential to increase it in line with cash collections over the coming months. Grit’s share price closed 0.77percent lower at R12.90 on the JSE yesterday.

BUSINESS REPORT 

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