Octodec’s portfolio quality assessment is constrained by high concentration to properties in the inner cities of Pretoria and Johannesburg, although this is counterbalanced by a very granular asset and tenant profile. We also note that despite the largely short-dated weighted average expiry profile, high core vacancies (1H FY20: 11.7%) and exposure to SMMEs, Octodec continues to achieve sound tenant retention and asset performance, with the relatively short lease profile helping to effectively manage bad debts and letting activity.
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