Delta Property Fund boosts income, faces going concern uncertainty

Delta Property Fund Limited (JSE:DLT) announced its audited condensed annual results for the year ended 28 February 2025, highlighting improved operational performance amid a challenging environment. Net operating income rose by 10.34% to ZAR 721.4 million, and the cost-to-income ratio improved to 47.8%. The Group achieved this by focusing on strategic property disposals and cost optimization. Despite these gains, Delta reported a net loss of ZAR 104.2 million, driven by fair value adjustments and increased credit losses, and KMPG noted a material uncertainty relating to the company’s ability to continue as a going concern. The fund's vacancy rate decreased to 31.9% due to property disposals, and it successfully renewed maturing debt facilities. The board has chosen not to declare a dividend for FY25. The company continues to dispose of non-core assets to optimize its portfolio and reduce debt.