RDI’s rent collection was at 83.1% at the end of March

CAPE TOWN – London and JSE-listed RDI Reit’s third quarter income collection, including the managed hotel portfolio and London serviced offices, amounted to 59 percent of the anticipated amount after government-enforced closures due to the Covid-19 virus impacted a number of the property assets.

Chief executive Mike Watters said yesterday that RDI was actively engaging tenants across the portfolio and assisting occupiers most in need. March rent collection, excluding income from operation assets, stood at 83.1 percent. He described the operational and asset management performance in the six months to February 29 as “robust”, and said the business was well placed to face challenges posed by the Covid-19 pandemic.

Underlying interim earnings fell to £20.8m (R472m) from £26.4m at the same time last year, but Watters said the decline had been flagged to investors earlier, because it had arisen from the sale of assets, the proceeds from which had been used to reduce leverage.

Strategy to improve the quality of the portfolio and strengthen the balance sheet had remained unchanged, with significant progress made to date.

Some £156m of disposals were completed at an average premium of 1.7 percent to market value, with a further £140m of disposals under way as the withdrawal from Germany and non-core UK assets continued.