Rebosis Property Fund has released its voluntary pre-close investor update for its financial year ended on the 31st of August 2021.
Continuing to meet its financial obligations over the period due to lower interest rates which have assisted the REIT in generating additional surplus cash reserves, it reported no material change to its balance sheet and the extension of its expired debt facilities (R7.9 million) for a further six months to the 28th of February 2022 at a new all-in rate of 6.4% (weighted average rate).
The company’s rental concessions during the first half of the financial year under review amounted to R14 million with R5 million during the second half of the financial year, totalling R70 million granted during the 2020 financial year.
Its office assets have performed consistently during the period, and it reported a 100% rate of government rental collections which have supported the collection of 108% of total rentals including retail and arrears for the six months to 31st of August 2021.
While collections on retail leases and space take-up have improved and its focused asset management initiatives have added new brands to its spectrum of top brands, its tenants in the entertainment and leisure sector remain under pressure, exacerbated by above inflationary increases in electricity and municipal charges and supply disruptions.
None of Rebosis’ retail assets endured any instances of looting during the civil unrest in July except for two ground floor retailers in its commercial office portfolio – Chambers and West Street Parkade – which were looted with none of its office assets impacted.
The short-term outlook for the property sector remains uncertain in the face of new Covid-19 variants and recovery remains dependent on the vaccination roll-out but Rebosis continues to operate as normal, meeting its financial obligations, generating surplus cash for the business and it continues to invest in value accretive and defensive capital expenditure (capex).
Rebosis enters its closed period as of the 1st of September 2021 and its results for the financial year ended 31st of August 2021 will be release on or around the 26th of November 2021.