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Grit Real Estate Income Group Ltd on Friday reported a jump in interim property income but saw a fall in profit. It also announced a deemed disposal and potential exit of its BHI interests. For the six months ended December 31, the Pan-African property investment and management company reported net property income of $22.1 million from $19.2 million a year earlier. Contractual rental collected during the period amounted to 108%, up from 95% a year earlier. The company said net operating income grew 9.1% versus the comparable period, positively impacted by ‘leasing activity and rent escalations achieved’. Pretax profit, however, fell to $6.2 million from $8.5 million, as finance costs widened to $18.2 million from $8.5 million. Net reinstatement value per share of $78.8 cents per share at period end, down 0.8% from $79.4 cents per share at June 30. Chief Executive Officer Bronwyn Knight said: ‘Grit produced a robust operating performance, including strong cash collections of 108.4% of contracted revenue, and is increasingly well placed to deliver further positive sustainable value for our shareholders and positive impact for the people of Africa.’ The company declared a gross dividend of US 2 cents per share for the period, down 20% from 2.50 cents a year prior. Looking ahead, Grit Real Estate said it aims to transition to a more resilient, higher-growth asset base. Additionally, it announced a deemed disposal of 17% and the potential further exit by Grit of its remaining interests in Beachcomber Hospitality Investments Ltd, an associate owning three hotels in Mauritius. BHI was set up as a business venture between New Mauritius Hotels Ltd and Grit. ‘Following a successful 2022 trading performance, BHI recently declared a dividend whereby Grit received €14.5 million in cash and NMH elected to receive a scrip dividend. This deemed disposal has resulted in Grit’s interests in BHI being diluted from 44.4% to 27.1% as at December 31,’ Grit said. As a result, Grit today signed a merger deal to merge Grit’s wholly owned subsidiary Leisure Property Northern Ltd(‘LPNL’), through which it owns its interest in BHI, with and into BHI. Shares were down 4.5% at 31.53 pence each on Friday afternoon in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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