Delta Property Fund forecasts lower earnings in 2020

In the year to end-February 2019, Delta Property Fund’s distributable earnings declined to 73.84c a share from 97.24c previously.

Net property income declined 9.7% in the year. The company said its property valuations decreased by R227m, partly because of the slow pace of lease renewals by the department of public works.

The company has also warned that earnings are likely to fall again in the year to end-February 2020 due to pressure on rentals.

Delta expects earnings to fall 8%-10% in the 2020 financial year.

Business Day TV spoke to Delta's CEO Sandile Nomvete for more detail.