Delta Property Fund holds onto dividend due to Covid-19

Business

Johannesburg – Delta Property Fund, which has a mostly government tenant base, has chosen to hold on to its dividend for its year to end-February due to uncertainty caused by the Covid-19 pandemic.

The group said due to the pandemic’s fluid nature the outlook remains highly uncertain, and there could be a further lockdown, as the virus is only expected to peak in September.

Distributable earnings per share for the year to end-February fell 38.1% to 45.69c, with Delta reporting increased vacancies and rental reversions amid SA’s recessionary economy.

Delta, which has about 714-million shares in issue, had previously paid a final dividend of 15.99c per share.

The group said collection of payment has been rather resilient due to its primary government tenant base.

The company collected over 80% of its monthly billings in April and May this year and expects to collect a further 10% once its sovereign tenants return to work after the lockdown, the group said.

“There is a risk associated with our retail and non-government tenants of approximately 10% of monthly billings, and we continue to engage on an individual basis with these tenants to assist where possible to ensure their sustainability,” read the statement issued by the group.

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