Rebosis sags as it cuts dividend. The property fund reported a loss for the year to August following a

revaluation of its properties.

Rebosis has trimmed its full-year dividend after a drop in the value of its

property portfolio pushed the property fund into a full-year loss. The

revaluations resulted in the value of Rebosis's underlying portfolio declining

by 3.9% to 18.1 rand billion. Its shares sank as much as 25%.

Rebosis owns six shopping malls, 42 office properties and a warehouse. Like-

for-like growth in the underlying retail portfolio amounted to 4.6% in the

year to end-August, 5.1% for the commercial portfolio and 7% for the

warehouse. Property expenses increased year-on-year, with an average net cost

to income ratio rising to 15.2% from 13.8%.

For the period, the fund reported a 20% rise in revenue to 20% to 2.26 rand

billion while net operating income increased by 48% to 840 rand million. However,

a 1.77 rand billion reduction in fair values resulted in a 924 rand million loss for

the year. It increased the dividend on its A shares by 5% to 252.86c but cut

the dividend on its B units by 27.7% to 92.83c.

It said it had made good progress in its strategy to be a retail-focused fund

and was well advanced with the disposal of its commercial properties.

Following a rise in its loan-to-value to 51.6%, it said the ratio would

decrease to 49.4% following the sale of its Boxwood property.

While the commercial portfolio is defensive in nature, management is focused

on the disposal program to achieve a loan-to-value ratio of less than 40%,"

CEO Sisa Ngebulana said. "Our portfolio's average escalation is 7%, however

growth in distribution for the year ahead will be dependent on improved

economic conditions in the retail sector."

Its shares closed 23.5% down at 4.60 rand.

Rebosis B units show 27% drop in distributions. Ltv now 51.6%. LFL rents

grow 4.7% and vacancies now 5.5%. Not a great result for unit holders - share

price down 21%

-- Sesfikile Capital (@Sesfikile_Cap) November 12, 2018

Here's what you should know about Sisa Ngebulana, who founded Rebosis, the

first black-owned JSE-listed property group.https://t.co/0GT8g9RNKn

-- SME South Africa (@SMESouthAfrica) November 12, 2018