11th May 2020 11:32
(Alliance News) - RDI REIT PLC on Monday reported a drop in portfolio value as it cancelled its interim dividend to preserve cash amid the coronavirus pandemic.
At February 29, the London and Johannesburg-listed real estate investor's EPRA NAV per share stood at 172.0 pence, 7.3% down from 185.5p at August 31.
RDI's portfolio was valued at GBP1.34 billion at the end of February, down 4.2% from GBP1.42 billion six months prior.
Net rental income in the first half slipped 1.7% to GBP35.7 million from GBP36.3 million a year before.
RDI's pretax loss widened year-on-year to GBP15.8 million from GBP7.0 million.
Occupancy was 96.5% at the end of the first half, up from 95.9% at the end of August.
Chair Gavin Tippier said: "We are releasing interim results in unprecedented times, but are pleased to report that the strategic actions taken over the last 12 months, including our disposal programme and proactive balance sheet management, have put the company in a position to weather the extraordinary conditions we face.
"Our focus during this time has been on the welfare, safety and security of our stakeholders, and on ensuring that asset values are protected, revenues are carefully managed and costs are minimised. In order to preserve liquidity, we have not declared an interim dividend, and will revisit distributions based on the results for the full financial year."
RDI noted it has collected 59% of rent due for March.
Chief Executive Mike Watters added: "Over the last few weeks, we have been focused on actively engaging with our tenants and taking necessary pragmatic actions across the business to ensure that we are best equipped to withstand this challenging period. The ongoing implementation of our consistent strategy means that the underlying portfolio is well positioned to resume activity as government restrictions begin to be lifted and, we hope, the onset of strengthening economic conditions.
"Our assets are focused on sectors and locations with long term positive structural demand characteristics, further reinforced by high portfolio occupancy, a diversified tenant base and a balance sheet that provides access to significant cash reserves."
Shares in RDI REIT were trading 5.2% lower in London on Monday at 49.19 pence. In Johannesburg, the shares were 1.4% lower at ZAR11.19.
By Paul McGowan; [email protected]
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