Resumption of dividends at Grit Real Estate Income Group after mixed half-year results

Grit Real Estate Income Group Limited has published its financial results for the six months ending December 31, 2023. The company, specializing in real estate in Africa, focuses on quality assets with long leases in hard currencies. It reported a slight increase in adjusted earnings per share from $1.02 to $1.03, while distributable earnings per share saw a 19.1% decline from $2.56 to $2.07. USD per share. The dividend per share also decreased by 25%, to $1.50.

The net operating income of the company's real estate portfolio showed an increase of 15.6%, reaching USD 29.7 million. However, EPRA net replacement value per share fell by 6.4%, while the group's loan-to-value ratio increased by 2.8 percentage points. Grit 2.0's asset recycling activities have begun to positively influence results, with a renewed focus on resilient and impact-driven real estate.

Despite a challenging environment, with increasing financing costs, the company announced the resumption of dividend payments, declaring an ordinary dividend of US$1.50 cents per share, derived from cash operating profits. This announcement comes at a time when Grit aims to strengthen its presence in Africa through targeted investments and low-risk development projects.