(Alliance News) - Grit Real Estate Income Group Ltd said Wednesday it plans to make a dividend payout for its current financial year, albeit at a reduced level compared to the prior year due to the period being affected by the Covid-19 pandemic.
The London & Johannesburg-listed real estate firm said it is targeting a dividend for the year ending June 30 to be at least 8.75 US cents per share, down 28% from 12.20 cents the prior year.
Grit has collected over 80% of attributable contracted rental revenue for April, and to date 76% of rental revenue for May.
Short-term concessions have been agreed for up to 9% of revenue for April and 12% for May, while short-term payment deferrals have been agreed on up to 16% of Grit's contracted revenue for April and May.
Looking ahead, Grit Real Estate said its collection of rent in May, June and July will be an important indicators of the prevailing level of income generation from its property portfolio over the short-term.
Covid-19 pandemic is expected to affect annual results, and the company said it expects to give an update in July when it has improved visibility.
"However, the board continues to draw comfort from the structure of its lease contracts, the quality of its multi-national tenants and the diversification of its portfolio across multiple geographies and asset classes," the company said.
Shares in Grit Real Estate were up 0.7% at USD0.68 on Wednesday in London, while its Johannesburg shares remained untraded at ZAR13.00.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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