Delta Property Fund (DLT) H1 2026 earnings summary

Executive summary

• Profit increased 72% year-on-year to R50.7m, mainly due to lower finance costs, improved collections, and operational efficiency.

• Portfolio optimization through disposal of non-core assets, reducing the portfolio from 83 to 76 properties valued at R6.3bn, with a focus on core assets and tenant diversification.

• Strategy centers on asset disposals, debt reduction, and transitioning to a sovereign-anchored, diversified commercial office fund.

• Portfolio mainly serves government and state-owned tenants, with a focus on longer leases and geographic diversification.

• Ongoing cost control and operational discipline underpin turnaround progress.

Financial highlights

• Revenue declined 0.9% to R578.2m due to disposals and vacancies; net operating income was R346.9m.

• Profit for HY2026 reached R50.7m, up from R29.5m in HY2025.

• Funds from operations per share rose to 9.2 cents (HY25: 8.1 cents).

• Net asset value per share increased to R3.5.

• Rental collections improved to 100% from 95.1% in FY2025.

Outlook and guidance

• Priority is completing R1.1bn in asset disposals to reduce debt and restore covenant compliance.

• Focus on improving leverage metrics, managing the balance sheet, and resuming distributions once covenants are met.

• Anticipates LTV to settle between 40%-50% and ICR to improve to around 2x post-disposals.

• Macro-economic outlook expected to improve with stabilised power supply and lower lending rates.

• Commercial leasing agents appointed to drive occupancy and diversify tenant base.