Transcend Residential Property Fund raised its distribution per share by 8.8 percent to 27.43 cents in the six months to June 30 compared with the same time last year and declared 100 percent of the amount as an interim cash dividend.
The full dividend payout is significant because in the past two years, due to the Covid-19 pandemic, many listed property companies have been holding back some of their distribution as a buffer against market uncertainty.
Last month, Emira Property Fund, which owns 40.69 percent of Transcend, made a general offer to acquire the shares in Transcend that it does not already own at R5.38 per share. Transcend’s share price was unchanged at R6.09 yesterday afternoon.
Transcend’s net asset value per share of R8.35 increased 3.3 percent by the end of the interim period from December 31, 2021. Loan-to-value improved to 39.3 percent from 44.9 percent at December 31.
Portfolio occupancy was healthy at 97.1 percent as at June 30, 2022, while the collection rate stood at 96.8 percent, and portfolio arrears were at 1.4 percent. The property portfolio’s value was R2.39bn at the end of the interim period.
The Block and Stoneleigh development was acquired for R256m and was transferred in the first quarter. Some 227 units were sold, with R222m gross sales proceeds, which was used to settle debt.
A R371.6m vanilla term facility was converted into a green loan, with green loans making up 68.1 percent of the debt book as at June 30. Net asset value per share fell 7.9 percent to R8.35 per share.
BUSINESS REPORT