Texton Property Fund Limited has released its summarised, audited, consolidated annual financial results for the year ended 30 June 2021, reporting an increase of 43.6% in distributable income compared to the prior financial year.
The REIT has made R128 million available for distribution as a dividend to shareholders, representing a pay-out ratio of 76.3% based on the number of shares (net of treasury shares including shares repurchased post 30 June 2021) amounting to 37.47 cents per share.
Texton’s loan-to-value (LTV) decreased from 46.2% in June 2020 to 31.8% during the reporting period. With R360 million in cash on hand and a further R149 million available in debt facilities, the REIT reduced its bank debt by R567.1 million of which R451.9 million is a payment reduction.
Net property income on a like-for-like basis decreased by 3.3% even though property revenue has fallen by 14.8% due to tight cost management and the sale of its non-core assets.
Its portfolio, comprising of 42 properties (June 2020: 53) in South Africa and UK, was valued at R3.6 billion as at 30 June 2021 (June 2020: R4.5 billion) with the geographic split of the portfolio by value at 61.1% (June 2020: 55.9%) in SA and 38.9% (June 2020: 44.1%) in the UK, including a 50% interest in Broad Street Mall.
The company reported a collection rate of 98.8% in South Africa and 100% in the UK over the past financial year.
It de-risked its balance sheet by the removal of GBP debt secured against its South African assets and the reduction in cross-currency interest rate swap.
With a record number of leases signed in South Africa, Texton continued to invest capital into its local properties with a significant investment undertaken to defend its weighted average lease expiry (WALE) which has resulted in 43% of its leases by rental value expiring over five years as opposed to 18.3% as at 30 June 2019.