Indluplace postpones its interim dividend payment
SOUTH Africa-focused affordable residential rental group Indluplace yesterday reported an 8.8 percent lower distribution of 34.17 cents a share for the six months to March 31 due to fair value adjustments, derivatives and company share scheme loans.
The environment had changed dramatically since the company entered the second half of its financial year, and the board withdrew its distribution guidance for the full year and postponed its interim dividend payment until year end.
Chief executive Carel de Wit said in an interview that some tenants had been negatively affected by the impact of the virus on the economy, with their employers having suspended operations and unable to continue to pay salaries. “Despite this, collections remained relatively good during April and May thus far.
The team has adopted innovative approaches to work with tenants on a case-by-case basis to structure payment plans,” said De Wit. Bad debts prior to lockdown were stable at 1 percent, but the lockdown was expected to have a big impact on this.
The approach to credit control had to be softened with the tenants that had been affected, while remaining firm with tenants able to pay. Paying rent remained a priority for most tenants and deposits were still intact, said De Wit.
With its focus on providing homes for working families, the company’s occupation rate going into lockdown was at its best levels for years.
Vacancies improved from 8.5 to 5.5 percent in the interim period due to progress with the letting of units at Highveld View, now more than 95 percent let.
The remainder of the portfolio also remained stable, he said.
The company owns a R4.1 billion portfolio of 9 668 residential units and 18 834m² of associated retail space.
In May there had been a slight increase in vacancies, as some tenants with affordability problems that were not able to be supported moved, but the group was confident that vacancies would improve again once people were fully able to move around freely again, said De Wit.