The SA REIT (Real Estate Investment Trust) sector has published a draft second edition to its best practice recommendations for public comment.
The SA REIT Best Practice Recommendations (BPR) was first published by the SA REIT Association in 2016 to make financial reporting of South African REITs more transparent and improve comparability. The BPR was driven by the sector, as several important metrics commonly reported on by REITs are not strictly governed by IFRS. It is intended to reduce divergence in reporting implementation among sector counters, and to evolve as the sector and financial reporting best practices progress.
The process of updating this guide, which is the accepted standard for reporting key metrics consistently to make the analysis and comparison of different SA REITs easier, began in August 2018. Following a broad consultative process, SA REIT has published the draft second edition of the SA REIT BPR for public comment. All interested parties can submit their input by Friday, May 3, 2019.
The draft was compiled with input from the sector and its major stakeholders, starting with the SA REIT Accounting and JSE Committee, and including consultation with leading sector analysts, top auditing firms and corporate advisors, SA REIT members and the JSE. Altogether, some 95 individual submissions were considered for the draft second edition.