Dipula takes an interest rate hit, but SA's retailers are still eyeing its space

Dipula Income Fund, owner of regional and community retail assets such as the Norwood Centre and Sunninghill's Chilli Lane, says while it has taken a hit from higher borrowing costs, this hasn't put off its retail tenants, who are still in a drive for additional space.

The Gauteng-focused landlord reported on Wednesday that its distributable earnings decreased by 6.9% to R514.2 million in its year to end-August, with the group hit by an over 14% climb in finance costs to R314 million.

However, vacancies improved, notably among offices, with CEO Izak Petersen saying the group had a series of wins, including R190 million of disposals at a pleasing discount to book value, a successful restructuring of debt, as well as cost-containment efforts that helped it beat inflation a little.