Texton Property Fund reports its record number of leases signed in SA

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.

Source: Propertywheel.co.za | https://propertywheel.co.za/2021/09/texton-property-fund-reports-its-record-number-of-leases-signed-in-sa/

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