Source: iNET BFA, Catalyst Fund Managers, 31 December 2021

As at 31 December 2021, the historical funds available for distribution (FAD) yield for the SAPY was c. 8%. The postponement of dividend payments and the substantial decline in earnings has affected the historical FAD yield for the sector.

Source: Catalyst Fund Managers, 31 December 2021

For 2021, we continue to forecast negative FAD growth impacted by higher vacancies, the continuation of rental discount provisions (albeit at a significantly lower level than 2020), impact of share issuances and negative reversions on renewals. Future restrictions and its duration remain a heightened risk for the sector. For the upcoming year we expect a reasonable rebound due to base effects and significantly lower rental discounts being provided.