The company, which includes Fourways Mall, Cedar Square Shopping Centre and the Portside offices in Cape Town, said arevenue from continuing and discontinued operations came to R993.3 million in the year from R1 billion the previous year.
Accelerate Property Fund declared a final distribution of 21.98 per share for the year to March 31 compared with nothing the year before, as the company continues with its strategy to sell non-core assets to strengthen its financial position.
The company, which includes Fourways Mall, Cedar Square Shopping Centre and the Portside offices in Cape Town among its prominent and diversified assets, said revenue from continuing and discontinued operations came to R993.3 million in the year from R1 billion the previous year. Rental assistance granted was well down to R35.13m from R182.52m.
The diluted gain per share came to 6.44 cents from a loss of 72.85 cents previously, following a consistent, if staggered improvement in trading and performance post Covid-19.
Accelerate has sold R3.2bn of assets since 2018, the most recent being the disposal of it's European retail portfolio.
The proceeds were used to reduce debt which fell to R4.5bn at March 31, from R6bn at March 31, 2021. Loan to value ratio reduced to 42.8 percent from 48.5 percent. Cash reserves and undrawn debt facilities of R223m had been accumulated.
There remain R763m of non-core assets to dispose of, which are at various stages in the disposal process. The plan is to also use these funds to reduce debt.
A number of opportunities to unlock additional value on existing properties and maximise current income streams through strategic capital spend were being explored, the company said.
Overall vacancies, by gross lettable area, increased to 21.2 percent from 15 percent, driven mainly by the sale of the European portfolio.
Net asset value per share fell to 6.21 cents from 6.28 cents.
As part of the strategy to strengthening the financial position and to minimise cash outflows, Accelerate received a commitment from 83.5 percent of its shareholders to a dividend reinvestment, resulting in the cash outflow from the distribution being less than the potential tax outflow had a distribution not been made.
Accelerate’s management said trading at small regional and neighbourhood retail centres had returned to pre-Covid 19 levels.
Retail vacancies remained stable at 8.9 percent. “We have seen significant progress made in letting at Cedar Square and Eden Meander, with the vacancy at Eden Meander reduced to under 1 percent..”
Office vacancy by revenue stood at 8.2 percent, with the bulk of it in B and C grade non-core assets which was being disposed of.
At Fourways Mall, which opened only three-months prior to the pandemic, there had been a “gradual and consistent increase in trading.”
The mall had a potential substantial insurance claim relating to losses as a result of Covid-19. Legal action had been instituted.
The current industrial portfolio of 4 non-core industrial assets was included in the list of assets to be disposed of.
edward.west@inl.co.za
BUSINESS REPORT