Accelerate Property Fund Limited Meets Financial Covenants Amid Robust Performance

Strategic Insights -

Accelerate Property Fund Limited, a Johannesburg Stock Exchange-listed real estate investment trust (REIT), has successfully met its financial covenants for the period ending 31 March 2024. The company assessed its loan-to-value and interest cover ratios, demonstrating its robust financial health. Noteholders of the APF16, APF18, and APF19 notes were informed of the financial covenant compliance requirements, which included maintaining a Loan to Value Ratio not exceeding 50% and an Interest Cover Ratio greater than 1.7 times. Accelerate reported satisfactory ratios, with a Loan to Value Ratio of 49.7%, Secured Properties Loan to Value Ratio of 47.8%, Interest Cover Ratio of 1.72 times, and Secured Properties Interest Cover Ratio of 1.79 times. The company's compliance with these financial covenants underscores its effective management and financial stability.

Key Takeaways:

  • Accelerate Property Fund Limited met its financial covenants for the period ending 31 March 2024, demonstrating robust financial health.
  • The company maintained a Loan to Value Ratio of 49.7%, well below the 50% threshold.
  • The company's Loan to Value Ratio for secured properties was 47.8%, also below the 50% threshold.
  • The Interest Cover Ratio was 1.72 times, and the Secured Properties Interest Cover Ratio was 1.79 times, exceeding the 1.7 times requirement.
  • Noteholders of the APF16, APF18, and APF19 notes were informed of the financial covenant compliance requirements.
  • Rand Merchant Bank provided debt sponsorship for the notification.
  • The compliance certificate is available for inspection at Accelerate's management office in Fourways, Johannesburg.

Statistics:

  • Loan to Value Ratio: 49.7%
  • Secured Properties Loan to Value Ratio: 47.8%
  • Interest Cover Ratio: 1.72 times
  • Secured Properties Interest Cover Ratio: 1.79 times
  • Threshold for Loan to Value Ratio: 50%
  • Threshold for Secured Properties Loan to Value Ratio: 50%
  • Threshold for Interest Cover Ratio: 1.7 times

Sources:

  • Johannesburger Stock Exchange (JSE)
  • Accelerate Property Fund Limited
  • Rand Merchant Bank, a division of FirstRand Bank Limited