Resilient interim results December 2018
Revenue for the interim period lowered to R1.9 billion (R2.0 billion) whilst profit before net finance costs dipped to R814.1 million (R10.5 billion). Profit attributable to equity holders also took a knock to R61.4 million (R9.7 billion). Furthermore, headline earnings per share tumbled to 27.42cps (1 684.14cps).
Payment of interim dividend
The Board has approved and notice is hereby given of an interim dividend of 263.66000 cents per share for the six months ended 31 December 2018.
Changes to the board
Bryan Hopkins retires from the Board on 15 February 2019. Following Bryan Hopkins' retirement, David Brown has been appointed chairman of the audit committee.
Stuart Bird, the previous CEO of Mr Price Group, has joined the Board as an independent non-executive director effective from 1 February 2019.
Resilient is in the fortunate position of having a conservatively geared balance sheet with a predominantly strong corporate tenant profile. After a long bull market, global property markets have entered a period of greater uncertainty and decreased liquidity. Property markets are cyclical and Resilient is well-positioned to take advantage of opportunities that may arise.
Economic conditions in South Africa remain challenging. As a result, Resilient's distribution is forecast to be between 530 and 550 cents per share for the 2019 financial year.
The forecast is based on the assumptions that there is no material deterioration of the macro-economic environment, that no major corporate failures will occur and that tenants will be able to absorb the recovery of rising utility costs and municipal rates. The forecast also assumes that Lighthouse and NEPI Rockcastle will achieve distributions in line with market expectations.