Oasis Crescent Property Fund is well-positioned to deal with challenges of the Covid-19 crisis
CAPE TOWN – Oasis Crescent Property Fund said it is well-positioned to deal with challenges of the Covid-19 crisis as it had no debt compared with other real estate investment trusts (REIT), and its liquid reserves were healthy.
The group was also less exposed to potential rental defaults through the lockdown compared with other REITs, as 87 percent of its tenants were multinational, national or government-related, and 76 percent of rental income was in the industrial, office and retail essential goods and services sectors.
In addition, the Fund had zero exposure to Edcon Group.
The group Thursday said its distribution per unit fell by 9.7 percent to 101 cents per unit in the year to March 31, 2020, from 111.9 cents per unit in the prior corresponding period.
Distribution per unit was impacted by 5.3 cents per unit or 4.7 percent, due to vacancy for property enhancement and property disposal, and by 1.7 cents per unit or 1.5 percent from additional property security costs.
The net asset value of R21.72 per unit was much in line with R21.98 in 2019. The share price was untraded at R21.25 Thursday morning.
The group owns mainly Western Cape properties, and it also has investments in global listed REITs.
Its direct property portfolio is in prime locations in Cape Town and industrial and logistic nodes in the area. There is only one property in the directly held portfolio outside the Western Cape.
Its unitholders have received a 12 percent per annum return since inception compared to inflation of 5.6 per year, and a 7.5 percent annualised return for the SA listed property index over the same period.
Revenue decreased by 1.4 percent to R114.6m during the past year. Distributable income fell by 6.4 percent to R64.3m.