Delta’s distribution per linked unit up 23%

by Trust Matsilele 0

The group’s six months ended August 2014 results also reported an improved portfolio value to seven billion rand.

[DATA DLT:Delta Property Fund Limited]’s announcement on SENS said its decision to not pursue the tripartite merger earlier this year had been vindicated as it has enabled Delta to act on other opportunities.

“Some of these [opportunities] have already been realised, such as the stake in Delta International. Other opportunities are continuously explored and in various stages of completion,” read the company statement.

“The stake in Delta International provides unique US dollar based exposure to retail and office sector growth in emerging market economies on the African continent, outside of South Africa, offering diversification and a Rand hedge.”

(WATCH VIDEO: Delta International lists on the JSE)

Delta also said its Asset Management team has continued to bed down the existing portfolio and extract maximum efficiencies from the assets.

“The assimilation of the newly internalised property management team has been concluded and is performing in line with expectations,” Delta added.

“Delta will continue to leverage its excellent empowerment credentials and deal-making abilities to further add to its core portfolio of defensive assets, as well as to secure lease renewals and maintain low vacancies.”

The group said the property market continues to face challenging conditions, with low economic growth and rising costs.

(READ MORE: Delta Property Fund buys over Phamog Properties)

“Despite these factors, Delta remains confident that focusing on fundamentals such as maintaining a defensive core portfolio, a long lease expiry profile and by actively managing re-financing and interest rate risks, it is well positioned to achieve double digit distribution growth going forward.”

Delta is in the process of converting its existing linked unit capital structure into an all share capital structure.