Spear Reit outperforms rivals and lifts its distribution by 6.06%

CAPE TOWN – Western Cape-focused Spear Reit continued to outperform in the year to February 29 by lifting its distribution 6.06 percent and a final dividend will be paid out for the year.

Most other property Reits have deferred dividend payments in order to preserve cash, in the face of the uncertain property market brought upon by store closures and tenant rental defaults due to government interventions in many countries in their efforts to contain the disease.

Chief executive Quintin Rossi said in a presentation yesterday that the firm would have R200 million cash available post the dividend. Low to high-road stress testing had made the group management confident of a mid- to high-road scenario for the 2021 financial year, which would result in continued growth in operating profit and the group comfortably being able to absorb any shocks.

He said Spear would continue to adopt active management strategies for the 2021 financial year to find tenants and fill vacancies that might arise.

Rossi expected also that a strategy of early tenant engagement would result in another year of high tenant retention. No income from the hospitality sector assets was factored into the stress test scenarios.