South Africa's Redefine Properties said on Wednesday it will lose an estimated 125 million rand ($8.4 million) from rental relief and deferrals for the 2021 financial year due to the impact of the coronavirus but may pay an annual dividend.
South African commercial real estate has been among the country's worst hit by the COVID-19 pandemic, along with travel and tourism.
With rising debt levels and falling income, some have been forced to sell assets, withhold dividend payouts and agree to lower rental payments or offer relief to tenants in shopping malls, offices and industrial sites as people stayed at home due to lockdowns.
Last month's riots sparked by the arrest of former President Jacob Zuma and fuelled by anger over poverty had also dented the recovery of property companies.
The riots have cost Redefine - owner of some prominent commercial real estate across the country - an estimated 141.7 million rand in property reinstatement costs, it said in a presentation to investors.
The company said it expected full recovery of its four affected retail properties by the end of February 2022, while reinstatement of its industrial properties is expected by March.
While the various levels of lockdown and unrest had impacted the retail portfolio, "the recovery trend has been steady and quite positive", Redefine CEO Andrew Konig said.
Redefine had resolved not to pay a dividend for the 2020 financial year to save cash, but Konig said strong progress on preserving liquidity and managing risks means the company, subject to the requisite solvency and liquidity test, may pay a dividend for the 2021 fiscal year ending August 31.
The company reports full year results on November 8.