Indluplace CEO: How the COVID-19 crisis is hurting property values, revenue
Residential property owner Indluplace Properties has reported that although rental collections were in excess of 85 per cent for April and over 70 per cent for May, they expect property values and revenue to decline in the short term due to the uncertainties around the impact of COVID-19. The group reported a headline earnings decrease of 65 per cent and has deferred paying its interim dividend to preserve cash. Indluplace CEO, Carel de Wit joins CNBC Africa for more.
Wed, 20 May 2020 10:45:57 GMT
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AI Generated Summary
- Indluplace Properties reports a 65% decrease in headline earnings due to COVID-19 uncertainties.
- Rental collections for April and May were above 85% and 70% respectively, but property values and revenue are expected to decline in the short term.
- The company has deferred paying its interim dividend to preserve cash and ensure financial stability during the crisis.
Residential property owner, Indluplace Properties, has reported a decline in headline earnings by 65% due to the uncertainties surrounding the impact of the COVID-19 pandemic. The group has decided to defer paying its interim dividend in order to preserve cash. Indluplace CEO, Carel de Wit, spoke with CNBC Africa about the challenges the company is facing amidst the ongoing crisis. While the rental collections for April and May were above 85% and 70% respectively, the CEO predicts a short-term decline in both property values and revenue. De Wit highlighted the difficulties posed by the uncertainties surrounding the pandemic, emphasizing the importance of being cautious in financial decisions during these challenging times.
In the interview, De Wit addressed the impact of the COVID-19 crisis on property values and revenue. He noted that while the company managed to maintain relatively high rental collections for April and May, the uncertainties surrounding the pandemic's long-term effects have led to a decline in property values and revenue. Given these challenges, the group has decided to defer its interim dividend to ensure the preservation of cash and maintain financial stability.
De Wit emphasized the importance of being cautious and strategic in navigating the current economic climate. He pointed out that the company's priority is to safeguard cash reserves and maintain financial resilience in the face of the ongoing crisis. Despite the challenges, De Wit remains optimistic about the company's ability to weather the storm and emerge stronger in the long run.
Key Points:
1. Indluplace Properties reports a 65% decrease in headline earnings due to COVID-19 uncertainties.
2. Rental collections for April and May were above 85% and 70% respectively, but property values and revenue are expected to decline in the short term.
3. The company has deferred paying its interim dividend to preserve cash and ensure financial stability during the crisis.
According to De Wit, "We are facing unprecedented challenges due to the COVID-19 crisis, but we are taking proactive steps to navigate these uncertainties and emerge stronger. Our focus is on preserving cash, maintaining financial stability, and weathering the storm to ensure the long-term success of Indluplace Properties."
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