Oasis Crescent warns of lower distribution

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Oasis Crescent warns of lower distribution

Published Date: 2020-10-20 | Source: Stephen Gunnion | Author: Stephen Gunnion

Oasis Crescent warns of lower distribution

The property fund says it has been cushioned by its high-quality tenant base and debt-free balance sheet.

Oasis Crescent Property Fund has warned that its interim distribution will be down from last year as a result of Covid-19. However, it says its high-quality tenant base and strong balance sheet position it well to protect investors from the increased economic uncertainty caused by the pandemic.

In a trading statement, the real estate investment trust (REIT) said its net asset value per unit at the end of September was between 1% and 4% down from R22.45 last year while its distribution per unit was likely to be 15-18% lower than the 52.2c previously reported. It attributed the decrease to rental discounts granted to tenants during the lockdown and additional expected credit loss provisions raised during the period. That was as a result of a delay in payments from tenants, the disruption caused by the pandemic and the slowdown of the economy.

The fund's results are scheduled for release on Thursday. Its shares didn't trade yesterday, closing unchanged at R21.50. The trading statement was released after the market close.





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