NEPI ROCKCASTLE, the leading property investment and development group in central and eastern Europe (CEE), has declared a 17.64 euro cents (about R3.08) dividend a share after a strong first half performance and in consideration of its robust balance sheet.
The dividend was paid out at 100 percent of distributable earnings per share, in line with the group’s policy of distributing at least 90 percent of distributable earnings.
Many retail property Reits have begun to pay normal dividends again after their rental incomes were abruptly curtailed through Covid-19 related restrictions all over the world last year.
NEPI Rockcastle chief executive Alex Morar said yesterday that all the group lettable area was operational in the six months to June 30 due to good progress in vaccinations and a decline of Covid-19 cases in all CEE countries.
“After a difficult first quarter, the second quarter saw our business fully reopening,” although he cautioned there was a risk of a new surge in Covid-19 cases due to the slowdown in vaccinations in some CEE countries and new variants in others.
“Recent trading data is very encouraging and points to a quick recovery. Tenant sales since reopening came very close to 2019 levels and rebounded faster than after the summer reopening of 2020,” Morar said.
Retailers and customers had adapted to the new circumstances which made the impact of restrictions in 2021 less severe than in 2020.
There were no major tenant bankruptcies; occupancy reached 95.6 percent, and the trend was expected to continue as retailers expand to take advantage of an economic rebound.
More than 99 percent of reported revenues for the 2020 financial year had been collected, while good progress was being made with tenant negotiations for 2021, leading to a collection rate for the first half of 2021 reported revenues of 94 percent at mid-August.
After repaying secured bank loans of €242 million, available liquidity was close to €1bn.
The group reported 17.64 euro cents in distributable earnings per share for the six months, 10.3 percent lower than for the six months ended June 30 last year.
The decrease was mostly due to the impact of the disposal of the Romanian office portfolio and higher finance costs due to maintaining additional liquidity when compared to the first half of 2020. Retail-only net operating income was 4.4 percent higher in the first half over the same period in 2020.
NEPI Rockcastle closed 3.40 percent higher at R102.55 on the JSE yesterday.
edward.west@inl.co.za
BUSINESS REPORT