Property is one of the few sectors that touches all aspects of the economy – from the roof over your head, the local convenience store around the corner to the sophisticated data centres that facilitate the explosion in demand for streaming services. Research by the SA REIT Association estimate that circa R3.5bn of Covid-19 related rental relief was provided by the SA listed property sector. The quantum of relief provided was predominately in 2020, which corresponded to the harshest lockdown restrictions, with focus being on retaining tenants, keeping businesses open, and people healthy and employed. It is important to note that 82% of relief provided was in the form of discounts and only 18% was deferrals.

Covid-19 RENTAL RELIEF

wdt_ID Ticker Total rental relief R’mn Discounts R’mn Deferrals R’mn Period (2020)
1 GRT 667 475 192 April-June
2 RDF 480 367 113 April-August
3 HYP 419 410 9 April-June
4 RES 226 224 2 April-June
5 ATT 199 179 20 April-Sept
6 APF 182 182 0 April-June
7 VKE 175 144 31 April-Dec
8 EMI 152 104 49 April-June
9 FFA/FFB 154 94 60 April-Dec
10 OCT 131 131 0 April-Aug

Source: SA REIT Association, Data November 2021

At Catalyst, we aim to invest responsibly. We believe companies that incorporate the three core factors of ESG into their strategy and implement demonstrative changes within their business tend to outperform their counterparts over the long-term. Companies integrating an ESG assessment into their long-term strategy should make better-informed decisions and provide stakeholders with a more comprehensive view of risk and opportunities in their individual investment case.