aREIT Prop, a property group focusing on leasehold properties in the hospitality and medical sectors, has been placed “on notice” by the Johannesburg Stock Exchange (JSE). If the suspension of its listing continues for the next 20 business days, aREIT risks being delisted from the stock exchange.
On Tuesday, July 2, 2024, the JSE issued a SENS announcement indicating that aREIT had failed to submit its annual report within the four-month period required by the JSE’s Listings Requirements. As a result, the company’s listing has been annotated with a ‘RE’ to signify its failure to meet this deadline.
The JSE warned that aREIT’s securities are at risk of suspension and potential removal if the company does not submit its annual report by May 31, 2024. Following this, on June 3, 2024, the JSE announced that aREIT had also failed to publish its condensed financial statements or annual/summary financial statements for the year ending December 31, 2023, leading to the immediate suspension of its securities.
Further complicating matters, on July 2, 2024, the JSE announced that aREIT had been placed “on notice” under section 6.5 (Suspension of Dealing) of the FTSE/JSE Ground Rules. If the company remains suspended for an additional 20 business days, it will be removed from the FTSE/JSE indexes with two days’ notice at a nominal value.
Andre Visser, the JSE’s Director of Issuer Regulation, confirmed to Daily Investor that aREIT’s securities were suspended due to its failure to publish the necessary financial information within the stipulated timeframe. He added that the suspension could be lifted once aREIT rectifies this breach by publishing the overdue financial statements.
aREIT Prop debuted on the JSE’s Main Board in March 2022 as the 39th company listed in the Real Estate Investment Trusts (REITs) sector, which had a market capitalization of approximately R327 billion at the time. At its listing, aREIT touted strategic investments in the health and leisure sectors, aimed at capitalizing on the post-Covid-19 recovery.
At the time, aREIT expressed enthusiasm about its listing, highlighting its quality tenants, long-term leases, and secure, predictable returns for investors. The company secured long-term leases with tenants, often structured to include a minimum rental or 25% of turnover, to support its growth strategy in the recovering health and hospitality industries. aREIT also planned to explore further long-term lease opportunities both locally and internationally.
Valdene Reddy, the JSE’s Director of Capital Markets, welcomed aREIT’s listing, noting the potential growth opportunities it brought to South Africa’s recovering economy and property sector.
“We are pleased to welcome aREIT to the JSE and are excited by the growth opportunities their listing brings for the company. The hospitality and health sectors are focus areas globally, and we look forward to the potential aREIT enables for South Africa,” Reddy said.
Despite efforts to reach aREIT for comment, Daily Investor did not receive a response by the time of publication.
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