Our investment case
Why invest in Hospitality?
More than9 000
Hospitality is a specialised Real Estate Investment Trust (‘REIT’) listed on the JSE, investing in the hospitality industry.
With a simplistic operating structure and a focus on sound corporate governance, we provide investors with exposure to the hospitality sector.
A DIVERSE PORTFOLIO
Our well-diversified portfolio of 54 properties across multiple geographic locations and classes of hotels ensures we can service a wide range of guests with more than 9 000 rooms in South Africa.
With distributable earnings of 90.37* cents per share, and a net asset value of R13.27 per share, we continue delivering tangible returns to our investors, even in a challenging economic climate. Hospitality performed consistently and distributed 100% of its distributable earnings during each financial year (in line with the JSE Listings Requirement, which requires a minimum distribution of 75% of distributable earnings) since its listing in 2006. However, in response to Covid-19, to conserve cash and due to not having received waivers from lenders on its net debt to EBITDA and interest cover covenant requirements for the measurement period 31 March 2021, the Board did not declare a dividend for the six months ended 31 March 2020.
Net asset value ofR13.27
The Fund’s low gearing provides us with the ability in the short term to endure the Covid-19 pandemic and in the longer term headroom to grow our portfolio by investing to improve the quality of our existing properties and acquiring well-located, value-enhancing hotels in major urban centres with strong brands and diverse source markets.
|*||Total distributable earnings per share for the year amounted to 90.37 cents, of which 35.40 cents was distributed as an interim dividend on 17 December 2019. The Board did not declare a final dividend for the year ended 31 March 2020.|