Specialised REIT, Transcend Residential Property Fund, has released its unaudited, condensed interim financial statements for the six months ended on the 30th of June 2021, declaring a distribution per share of 25.21 cents – an increase of 108.35% from the same comparative period (30th of June 2020) with 100% of distributable earnings declared as an interim cash dividend.
While the REIT reported a decrease in its revenue from total operations, down 13.55% to R154.99 million with its operating profit from total operations also down 14.10% to R86.95 million, its headline earnings per share were up (298.43%) to an earnings per share of 53.22cps with its basic and diluted earnings per share up (428.37%) to an earnings per share of 128.46cps.
The company’s earnings per share from continuing operations also improved, up by 552.91% to an earnings per share of 128.46cps and it declared a Net Asset Value (NAV) of R9.07 per share, an increase of 2.95%.
With its portfolio valued at R2.52 billion, the company declared an average portfolio occupancy rate of 94.41%, an average rental collection rate of 96.31% and arrears of 3.53% for the reporting period.
Transcend’s Loan-to-Value (LTV) of 49.82% recorded an improvement from the 52.69% it reported as at the 31st of December 2020, and it has fully settled a shareholder loan of R93.36 million through cash and senior debt. The company secured a R100 million revolving credit facility to bolster its liquidity buffer.
The portfolio year-to-date (30th of June 2021 and calculated on net income) excludes investment properties which are currently being disposed of on a unit basis, namely Midrand Village, Birchwood Village, and De Velde – where vacancies are required to facilitate sales. Total portfolio occupancy, collections, and arrears of all properties on a year-to-date basis is 90.75%, 96.93%, and 3.45% respectively.
Transcend’s board has approved and notified shareholders of an interim dividend of 25.21 cents per share for the period ended on the 30th of June 2021 (30 June 2020: 12.09972 cents per share).