Wrap Text
Unaudited condensed interim results for the period ended 31 August 2025
Delta Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
JSE share code: DLT
ISIN: ZAE000194049
(Approved as a REIT by the JSE)
("Delta" or the "Company" or the "Group")
SHORT-FORM ANNOUNCEMENT
UNAUDITED CONDENSED INTERIM RESULTS FOR THE PERIOD ENDED 31 AUGUST 2025
HIGHLIGHTS
* Profit for the period R50.7m (August 2024: R29.5m)
* Average rental collections 100% (February 2025: 95.1%)
* Weighted average lease expiry 12.8 months (February 2025: 14.7 months)
* Interest cover ratio 1.5 times (February 2025: 1.4 times)
* Vacancy rate at 29.7% (February 2025: 31.9%) and at 18.7% when excluding non-current
assets held for sale
* Covenant loan to value ratio 58.4% (February 2025:59.5%)
* Net asset value per share R3.5 (February 2025: R3.6)
INTRODUCTION
We are pleased to present the Group's financial performance that demonstrates
continued progress in executing strategic priorities and reflects an increase in
profit for the current reporting period ("HY26"). Ongoing strategic initiatives
include portfolio optimisation through the divestiture of non-core properties,
prudent debt management, rigorous cost control measures, lease renewals and concerted
efforts to reduce property vacancies. The Group remains committed to strengthening
operational efficiency and financial resilience through the continued execution of
these initiatives.
Unaudited 31 Unaudited 31 Change %
August 2025 August 2024
Rental income (R'million) 578.2 583.7 (0.9)
Net operating income (R'million) 346.9 365.8 (5.2)
Profit for the period (R'million) 50.7 29.5 (71.9)
Basic and diluted profit per share 7.1 4.1 73.2
(cents)
Basic and diluted headline 7.5 5.1 47.1
earnings per share (cents)
SA REIT funds from 9.2 8.1 13.6
operations/distributable earnings
per share (cents)
Average value per property R8 425.6/m2 R8 296.2/m2 1.6
(including NCAHFS)
The Group reported a solid profit for the period of R50.7m, an increase from R29.5 in
HY25 and stable Funds from Operations of R65.4m compared to R57.6m in HY25. This
improvement was achieved in a context of lower net operating income, reduced profit from
operations and savings in administrative costs as well as finance costs.
Revenue, excluding straight-line rental income accrual, decreased marginally by 0.9% from
R583.7m to R578.2m, primarily driven by a reduction in rental income, attributable to a
limited number of vacancies, rent reversions, and lost revenue from disposed properties.
Property operating expenses increased by 2.3% from R220.5m to R225.6m. Administrative
expenses decreased by 5.2% from R49.4m to R46.8m. The overall cost savings are due to
cost containment initiatives and the impact of disposal of non-core properties, which
contributed to lowering of property holding costs.
The cash generated for the period amounted to R327.3m consisting of cash generated from
operations of R319.2m, interest income of R0.1m, and net proceeds from property disposal
of R8.0m. The cash generated was applied towards finance costs of R201.3m, taxation of
R34.5m, capex of R42.2m, lease liabilities of R2.6m, and net debt repayment of R41.0m.
The cash and cash equivalent balance has improved from FY25 mainly due to improvement
of collections.
LETTING
43 leases totaling 47 943m were renewed during the period. The lease renewals were
concluded at a weighted average lease term of 1.5 years. In addition, the Group
concluded new leases for a total GLA of 14 674m2, with a weighted average lease term
of 1 year. Portfolio vacancies improved from 31.9% in FY25 to 29.7% in the interim
period, driven by the disposal of certain properties and the conclusion of new leases.
ARREARS AND COLLECTION
As of the end of the period, trade and other receivables were R146.2m, down from
R155.4m in FY25. The average collection rate for the period improved to 100.0% of
billings, up from 95.1% in FY25, reflecting improved collection.
DISPOSALS
Delta's portfolio optimisation strategy includes the disposal of selected non-core
largely vacant properties. Seven properties with a total GLA of 32 199m2 were transferred
during the reporting period for a gross consideration of R102.6m and three properties
with a GLA of 25 268m2 transferred post the period for a gross consideration of
R58.5m. Four properties held for sale with a combined GLA of 42 392m2 and are expected
to transfer before the end of the financial year for a total gross consideration of R130.8m.
Further to the property disposals, on 6 November 2025, the Group disposed of its entire
holding of 14 869 210 shares in Grit for a consideration of 5.45 pence per share, being
the prevailing market price.
FUNDING
Total interest-bearing debt declined to R3.7bn (FY25: R3.9bn) during the reporting period
as a result of disposals and amortisation payments. Capital payments for the period
amounted to R143.3m (HY25: R139.8m), R92.2m (HY25: 92.5m) from proceeds on disposal of
properties and R51.0m (HY25: R43.2m) from amortisation payments. Finance costs decreased
from R237.4m to R211.4m due to interest rates cuts and capital payments. The weighted
average cost of funding decreased to 10.5% (HY25: 11.4%). Consequently, ICR has improved
to 1.5 times (FY25: 1.4 times) and Covenant LTV improved from 59.5% to 58.4%.
As previously reported, the Group successfully renewed matured debt facilities with
Nedbank and Investec to 7 April 2026 and 7 March 2027 respectively. The short-term target
is to achieve debt maturity of two to three years. The Group continues to engage with
its funders to improve the pricing of debt, extend debt maturity periods, and restructure
amortisation.
DIVIDEND
Delta's SA REIT Funds from operations ("FFO") per share amounts to 9.2 cents for the
reporting period (HY25: 8.1 cents per share). Following the test conducted in terms of
Section 46 of the Companies Act, which took into consideration the cash flow forecast,
expected working capital requirements, capital expenditure requirements and contracted
tenant installations relating to lease renewals, the Board resolved not to declare an
interim dividend for the period ended 31 August 2025 (HY25: Nil).
PROSPECTS
Looking ahead, the macroeconomic outlook is expected to improve, underpinned by rising
investor confidence, a stabilised power grid, and forecasted reductions in prime lending
rate. The office sector is demonstrating signs of continuous recovery, but the demand
for B-grade office space is anticipated to remain subdued in the short term. Overall,
these factors are expected to foster a more positive business environment and support
economic growth over the medium term.
The Group remains focused on executing its strategic objectives. Key priorities include
strengthening the balance sheet through the divestment of non-core properties, ongoing
stringent cost-control measures, securing lease renewals, and reducing vacancies. These
initiatives are aimed at enhancing the WALE, rental collection and improving overall
profitability.
The Group will continue to focus on being a leaner and more agile organisation, improving
operational efficiency, and enhancing profitability. These actions remain central to
the Group's strategy as it progresses towards meeting debt covenant requirements and
maintaining a sustainable financial position. The Group is further committed to
proactive stakeholder engagement, which has already delivered promising outcomes and
remains confident of its trajectory.
The Group is confident that the current macro-economic outlook will support and drive
its growth and will resume distribution in the medium term.
The prospects have not been audited, reviewed or reported on by the Group's independent
external auditors.
ABOUT THIS ANNOUNCEMENT
Any investment decisions made by investors and shareholders should be based on
consideration of the full announcement. Shareholders are encouraged to review the full
announcement, which is available on the JSE cloudlink at
https://senspdf.jse.co.za/documents/2025/jse/isse/DLT/ie2025.pdf and on the Group's
website https://www.deltafund.co.za/financial-results/.
The content of this short-form announcement is the responsibility of the board of
directors of Delta. This short-form announcement is a condensed version of the full
announcement in respect of the unaudited condensed consolidated interim financial results
for the period ended 31 August 2025 ("Interim Results") and does not contain full or
complete details of the Interim results.
Delta Management will host a presentation on the Interim Results via webcast on
Tuesday, 25 November 2025 starting at 12:30 (South African time). A virtual question
and answer session will follow the presentation. The webcast can be accessed via
the following link: https://www.corpcam.com/DPF26112025.
The Interim Results presentation will be made available for download from the Company's
website at: https://www.deltafund.co.za/financials/
A recording of the webcast and Q&A session will be available for download within 24 hours
after the presentation from the Company's website at:
https://www.deltafund.co.za/financials.
By order of the Board
P Langeni S Masinga
(Chairman) (CEO)
20 November 2025
Date of release: 20 November 2025
Chairman: **Phumzile Langeni, *Mpho Makwana (Chairman Designate)
Directors: ***Sindi Zilwa, *Solly Mboweni, *Thomas Tshepo Matlala, *Eugene Zungu,
*Leonard Brett Van Niekerk
CEO: Sibongile Masinga; CFO: Zwelifikile Mhlontlo
Company Secretary: Vasta Mhlongo
*Independent non-executive director, **Non-executive director, ***Lead independent
director
Registered office:
Silver Stream Office Park, 10 Muswell Road South,
Bryanston, (PostNet Suite 210, Private Bag X21,
Bryanston, 2021)
Transfer secretaries: Computershare Investor Services Proprietary Limited
Sponsor: Java Capital
Date: 20-11-2025 12:30:00
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