Transcend rental collections withstand Covid-19 storm
Rental collections of Transcend Property Fund have not been disrupted due to the Covid-19 outbreak, the company said on Monday, but it has withdrawn its distribution guidance due to an expected deterioration in the economy.
The company owns 23 buildings containing 4,730 rental units worth R2.77bn as of end-December, which it lets monthly.
In the first three months of 2020 rental income has been uninterrupted, with the group saying it is generating strong cash flows.
The group has implemented an income-declaration process for tenants whose income has been affected by the pandemic.
Transcend’s distribution per share grew 0.7% to 65.14c in its year to end-December.
It had advised the market it expected even higher growth in 2020.
This guidance has now been withdrawn.
“The company continues to be in constant communication with tenants and key service providers to keep abreast of, and review, their circumstances as they respond to the pandemic,” the group said.
Transcend has a market capitalisation of R912m and its little-traded share has risen 7.53% so far in 2020, compared with a 52.18% fall in the JSE property index. — BusinessLIVE