Dipula Income Fund CEO: How COVID-19 is impacting the business

The DePula Income Fund has made the decision to defer declaring an interim dividend until the release of its full year results in August. This move comes in the wake of a 5.6 percent decline in headline earnings per share and a significant drop in vacancies by 27.5 percent. Izak Petersen, the CEO of DePula Income Fund, spoke with CNBC Africa to shed light on the company's recent performance and the challenges posed by the ongoing COVID-19 pandemic. Petersen highlighted the positive trend of decreasing vacancies within their portfolio, attributing it to strategic efforts made in optimizing their industrial holdings. Despite facing adversity in the smaller tenant space, particularly due to current market conditions, DePula Income Fund has found success in attracting larger tenants, particularly in the logistics sector. Petersen acknowledged the pressure on rental rates and the need to adapt to market realities, leading to accommodations made in leasing agreements to reflect the current landscape. However, the CEO expressed caution amidst the uncertain business environment caused by the global health crisis. The impact of COVID-19 on the company's tenants varied significantly, with essential businesses showing resilience in rent payments, while smaller enterprises faced challenges in meeting their obligations. Petersen emphasized the need for ongoing dialogue and flexibility in rental negotiations to support struggling tenants and mitigate immediate financial distress. As the company navigates through the economic repercussions of the pandemic, DePula Income Fund remains vigilant in assessing the evolving situation and adapting their strategies accordingly. The decision to postpone the interim dividend declaration underscores the prudent approach taken by the company to safeguard its financial stability and weather the storm. The coming months will be crucial in determining the long-term effects of COVID-19 on DePula Income Fund's business operations. The CEO's insights offer a glimpse into the complexities faced by real estate companies in balancing commercial interests with the welfare of their tenants during these unprecedented times. Through strategic planning and proactive engagement, DePula Income Fund aims to navigate the challenges ahead and emerge stronger from the current crisis.