Delta Property Fund (DLT) H2 2026 earnings summary

Executive summary

• Net profit for FY26 was R127.0m, a turnaround from a loss of R104.2m in FY25, driven by lower admin and finance costs, improved rental collections, and stable property valuations.

• Revenue remained stable at R1.15bn, with improved cost recoveries and a higher weighted average rental per m².

• Portfolio optimization continued with the disposal of non-core, largely vacant properties, reducing vacancies and debt.

• The Board did not declare a dividend for FY26, prioritizing liquidity and debt reduction.

Financial highlights

• Net operating income decreased to R674.9m from R721.4m year-over-year due to higher operating costs.

• Profit for the year improved to R127.0m from a loss of R104.2m year-over-year.

• Loan-to-value (LTV) ratio improved to 56.7% from 59.5% year-over-year.

• Interest cover ratio increased to 1.5x from 1.4x year-over-year.

• Vacancy rate reduced to 27.3% from 31.9% year-over-year.

• Rental collection rate rose to 99.8% from 95.1% year-over-year.

• SA REIT net asset value per share increased to R3.57 from R3.39 year-over-year.

Outlook and guidance

• Focus remains on debt reduction, improving covenant metrics, securing lease renewals, reducing vacancies, and stringent cost controls.

• The medium-term outlook is cautiously optimistic, dependent on inflation, interest rates, economic growth, and geopolitical developments.

• Continued engagement with lenders and progress on asset disposals are expected to support recovery.