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Grit Real Estate Income Group Ltd on Tuesday said it seeks to recalibrate its capital structure as annual net asset value declined amid ‘persistent macroeconomic headwinds’. Shares in the Mauritius-based Pan-African property investment and management company closed flat at 7.00p in London on Tuesday. At June 30, European Public Real Estate Association net reinstatement value per share declined to 48.4 US cents from 57.9 cents a year prior. Net asset value per share fell to 35.5 cents from 43.9 cents. The decline in NAV underscores ‘the broader reassessment of real estate values across the continent, particularly within the retail sector’, said Chair Peter Todd. Chief Executive Officer Bronwyn Knight said the performance reflected ‘persistent macroeconomic headwinds, particularly policy changes in the United States that have triggered capital outflows from emerging markets.’ ‘These shifts have tightened liquidity conditions and disrupted demand-supply dynamics across the continent, prompting a widespread reassessment of real estate valuations and exerting downward pressure on distributable earnings,’ Knight added. In the twelve months to June 30, net property income rose to $58.5 million from $51.6 million a year ago. Pretax loss narrowed to $68.0 million from $90.07 million. Looking ahead, Chair Todd called for a recalibration of Grit’s capital structure ‘to better align the business with its long-term strategic objectives.’ This is expected to support improved free cash generation flow through targeted debt reduction as well as enhanced flexibility in meeting near-term obligations and dividend distribution potential, Todd said. The group aims to secure high-yield projects in business process outsourcing infrastructure, data centres, light industrial/logistics assets and diplomatic housing infrastructure. ‘These core sectors remain underpinned by structural demand and robust tenant interest,’ said Todd. ‘However, their realisation is currently constrained by limited access to development capital, despite strong co-investor support.’ ‘Management is carefully assessing all options to optimise the capital base, with a view to creating a sustainable platform that balances liquidity, resilience, and growth,’ the chair added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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