Texton Property Fund collects bulk on rent in April, May
CAPE TOWN - Texton Property Fund, which owns properties in the UK and South Africa, said Friday it had collected more than 85 percent of rent billings for April and May, periods of lockdown in both countries.
Commercial property groups have struggled through Covid-19 lockdowns to receive rent from their tenants, particularly retail store owners. Some 50.6 percent of Taxton’s portfolio is in commercial properties, 33.3 percent in industrial and 16.1 percent in retail.
The share price fell 0.71 percent to R1.39 on the JSE Friday afternoon, before closing at xx. The share price has fallen steadily over three years from R8.10 a share.
Texton said its management had placed a significant amount of time engaging with tenants to find a financially sustainable solution mutually beneficial to Texton and its shareholders, and as of Friday, 77 percent of its June 2020 billings in South Africa have been collected.
In the UK 97 percent of billings had been collected from the owned portfolio, for the second quarter ending June 2020.
Texton’s largest asset in South Africa was the Foretrust building, on the Foreshore in Cape Town. The property was let to the Department of Public Works & Infrastructure, and the lease renewal had been completed for a five year term with 6 percent annual escalation.
The group’s asset disposal program had been successful, and R180m of asset sales was expected to complete over the next four months.
Texton’s loan-to-value ratio (LTV) was 44.9 percent as at December 31, 2019 and since then another R70m had been paid into banking facilities to
reduce borrowings in South Africa.
In South Africa terms had been agreed with Standard Bank to refinance debt that expires in the near term. In the UK, debt had been refinanced and a 32 million pound five year facility had been obtained with HSBC.
Texton said it had so far been able to withstand “the significant and unprecedented economic deterioration in both South Africa and the UK.”
However, “the environment in which we find ourselves is still very fluid and it is difficult to quantify what the effect of the pandemic will have on our business,” group directors said Friday.
Texton expects to announce its year-end financial results on or about September 23, 2020.