Resilient confident of achieving a 5% rise in distribution growth
Resilient said on Friday that the board was concerned about South Africa’s continued above-inflation increases in administered prices, particularly utilities and electricity rates, in the subdued economic environment.
“The board has reconfirmed its guidance of approximately 5percent for the full financial year. The growth is based on the assumptions that there is no further deterioration of the macro-economic environment, that no major corporate failures will occur and that tenants will be able to absorb the recovery of rising utility costs and municipal rates,” the group said.
Resilient also based the forecast on the assumption that Lighthouse and Nepi Rockcastle would achieve distributions in line with market expectations and it intends to benefit from the recent decrease in the prime rate as a result of its interest rate caps.
“This benefit is, however, largely offset by increased unbudgeted repairs and maintenance of electrical equipment ascribed to the repeated interruptions in power supply,” Resilient said.
Source: iol.co.za
