JSE-listed real estate investment trust (Reit) Rebosis Property Fund's share price fell by more than 23% on Monday.
The Reit declared a dividend of 252.86c per A ordinary share and 92.83c per ordinary share for the financial year ended August 31. This represents a 5% year-on-year increase in the A ordinary share, but a 27.7% year-on-year decrease for the ordinary share.
Rebosis owns a diversified portfolio of commercial and retail assets.
The portfolio was revalued by independent valuers, LDM Valuation Solutions for both the commercial and industrial portfolios and Mills Fitchet for the retail portfolio.
The value in the underlying portfolio declined by 3.9% to R18.09-billion.
The like-for-like growth in the underlying retail portfolio amounted to 4.6% year-on-year, 5.1% for the commercial portfolio and 7% for the industrial assets.
Property expenses have increased year-on-year, with the average net cost to income ratio increasing from 13.8% to 15.2%.
In terms of retail, Rebosis’ portfolio at year-end comprised six dominant malls – Baywest, Hemingways, Forest Hill, Mantashe, Sunnypark and Bloed Street. This entails a strong national tenant profile, a weighted average lease expiry of 3.8 years, an average contractual escalation of 6.9% and vacancies of 1.8%.
The portfolio’s valuation is R8.08-billion.
The office portfolio at year-end comprised 42 predominantly A- and B-grade well-located properties in nodes attractive to government tenants. These are let primarily to the Department of Public Works, have a weighted average lease expiry of 1.4 years, an average contractual escalation of 7.2%, are shielded from private sector related default and have vacancies of 7.7%.
The portfolio’s valuation is R9.82-billion.
Rebosis’ industrial portfolio, which comprises one single-tenanted industrial warehouse, was valued at R185 000 at year-end. It has a weighted average lease expiry of 7.3 years, a lease underpinned by an international listed blue-chip parent company, an average contractual escalation of 7% and no vacancy.
At year-end, Rebosis’ borrowings had increased to R10.7-billion owing to the additional funding provided to New Frontier to acquire the Dublin asset, the exercise of the Prescient put options to acquire additional shares in New Frontier, and additional loans advanced to New Frontier for capital requirements.