RETAIL-focused Resilient declared a 202.7 cents a share dividend for the six months to December 31, a period when many other listed Reits have not paid dividends.
In addition, the dividend payout ratio is being held at 100 percent — many other Reits have lowered this to preserve cash for their operations in the uncertain economic environment. However, Resilient provided no guidance for the year end due to Covid-related economic uncertainties.
“Resilient's property portfolio has proved to be defensive. Leisure and entertainment remain severely impacted by Covid and the recovery of these segments is dependent on the roll-out of the vaccination programme,” the group said in a statement.
The dividend for the group that invests in dominant retail centres with a minimum of three anchor tenants, was 24.4 percent lower than for the same period a year before, which was pre-Covid 19.
In the interim period, 95 percent of rentals and bills were collected.
The support of tenants with sustainable business models continued.
“The pandemic has accelerated many trends affecting retail properties including the decline of department stores, improved logistics resulting in more efficient use of retail space, changes in demographics and in brand preferences, increased spend on groceries as a proportion of retail sales as well as the demand for increased convenience by customers,” the group said.
Resilient had initiatives in place for all its centres to continue to operate into the future. “A number of retailers, however, might not recover from the impact of Covid,” the group said.
“Fortunately, other established retailers and new entrants are seeking to expand their footprints, particularly in non-metropolitan markets. These include Studio 88 group, Webbers, Refinery, Ackermans Woman, Polo, Fashion Fusion, Code, Bathu and Drip.”
Some R15.2m of the arrears at December 31 had been collected and R14.3m was expected to be recovered on conclusion of the Edcon business rescue process.
This would align arrears to that of the comparative pre-COVID period.
The listed investments contributed R123m less towards distributable earnings after NEPI Rockcastle and Lighthouse were impacted by Covid-related restrictions.
In addition, NEPI Rockcastle reduced its payout ratio.
The comparable results included R374.7m of revenue from Resilient's listed investments.
Results were further impacted by above-inflation increases in administered prices, particularly utilities and rates.
Resilient benefited from R127m of interest earned on the €221m cross-currency swops, as well as R19m of capitalised interest.
Net asset value was down 17.54 percent to 50.60c a share. Loan-to-value ratio was at 33.7 percent versus 27.2 percent previously.
The group said malls with exposure to mining and high-value agricultural produce performed strongly, while those with leisure and entertainment offerings suffered from the extended lockdown restrictions.
The closure of offices in surrounding office nodes had a more severe impact on Rivonia Village than initially expected. Arbour Crossing benefited from new lettings particularly the relocated and expanded Food Lover's Market and a new gymnasium.
In some instances, the right-sizing of the Edgars stores would facilitate the introduction of an additional grocer.
BUSINESS REPORT ONLINE