Stenprop rent collection remains strong
By Edward West 34m ago
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CAPE TOWN – Stenprop, the UK-based owner of multi-let industrial estates (MLI), said rent collection remained strong at 90 percent across the portfolio as at September 30, 2020.
A dividend of 3.375 pence per share for the six months ended September 30 was declared, in line with the payout at the same time a year before, the group, which has a secondary listing on the JSE, said in the results published Friday.
There had been an average 18 percent uplift in MLI passing rents driven by continued strong
leasing momentum, with 119 new lease renewals at an average lease term of 3.8 years. MLI occupancy was up 2.2 percent to 93.3 percent compared with in March 2020.
Five MLI estates were acquired in the six-months for 40m pounds. A further three estates were completed post period end for 20.2m pounds.
The MLI portfolio surpassed five million square foot for the first time, growing the portfolio value to 360.5m pounds, up from 291.6m at the same time last year and representing 62.8 percent (2019: 44.6 percent) of the total property portfolio by value, with a target of 75 percent by the end of the financial year.
The recycling of assets was on track with the sale of a retail park in Berlin for 27m euro, 15.4 percent ahead of the year end valuation. Further sales in Germany were expected in the second half of the financial year, the group said.
Group loan to value was 36.6 percent versus 40.8 percent in March 2020, falling to 29.6 percent when applying free cash (March 2020: 27.7 percent), leaving significant headroom for both interest cover and LTV loan covenants, the group said.
BUSINESS REPORT ONLINE