SENS: Mara Delta: Interim financial results – 3 months ended 30/09/2016


Mara Delta forecasted growth on distribution of 2% to 4%, which is on target to be delivered.

The calculated distribution for the period 1 July 2016 to 30 September 2016 falls within the forecast on the previous year’s full year distribution of US$11.75 cents per share.

Rental income together with income from associates has increased 49.3% versus the first quarter of the 2016 financial year on the back of asset acquisitions in the latter half of the previous financial year. The rental income increase included the impact of the US Dollar-based rental escalations.

Operating costs were maintained at expected levels and the Operating cost percentage decreased to 24.3% for the first quarter of the 2017 financial year from 25.7% for the 2016 financial year.

The Company continues to make significant progress in reducing its cost of borrowings with the weighted average cost of debt decreasing to 5.65% for the three months ended 30 September 2016 (year ended 30 June 2016: 6.22%). The Company’s loan to value ratio at 30 September 2016 was 49.58%, up from 48.85% reported in June 2016.

Despite the economic and liquidity challenges that Mozambique is currently facing, Mara Delta’s assets are performing as expected with no material movement in vacancies or arrears. The Company remains confident about the long-term growth prospects in Mozambique.

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