Dipula defers interim dividend
CAPE TOWN - South Africa-focused REIT Dipula Income Fund’s headline earnings per share fell 5.6 percent to 44.15 cents in the six months to February 29 and the interim dividend was deferred, pending evaluation of the impact of the Covid-19 pandemic on the company.
Revenue was up 1.1 percent to R680.1 million, while net operating profit fell 4 percent to R439.7m. Net asset value a share up 3 percent to R10.18. The share price was unchanged at R5.13 Monday morning.
Dipula owns an R8.9 billion portfolio of retail, office and industrial assets in nine provinces, but mainly in Gauteng. It also invests in the residential rental sector. The portfolio value increased 3.6 percent due to valuations.
“Dipula expects downward pressure on rental revenue in the short term. The impact of the lockdown cannot accurately be determined at this stage due to the fluidity of the situation,” said chief executive Izak Petersen.
The company was talking with bankers regarding the possible impact of Covid-19 on covenant levels, if any, and the availability of additional short-term liquidity facilities should these be required. Gearing fell slightly to 40 percent.
“The board remains confident of Dipula’s robust operating platform and that its defensive and diversified portfolio is well positioned to weather current market conditions.”
The company would acquire a 50.1 percent interest in the Palm Springs residential property in Cosmo City, on completion of the development. The development consists of 428 units. Dipula’s cost for this would be R121m, with R47m being funded by debt and the remaining R74m in cash.