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Accelerate Property Fund’s share price has dropped 25% this year as investors remain concerned about its debt burden, impairments and the continued suspension of dividends.The shares have slumped 15% so far this month as investors assess the group’s ongoing efforts to repair its balance sheet through a series of sales. Its latest is the R174m disposal of the BMW Fourways dealership property, with the proceeds earmarked for debt reduction.The pressure comes on the heels of a difficult 2025 financial year, in which the Reit reported an after-tax loss of R1.27bn and a distributable loss of R71.3m for the 12 months to end-March, driven largely by huge property impairments.The company has been battling to reverse years of financial strain due to hefty borrowing, weak property markets, and mounting financial risks tied to its heavy exposure to the Fourways Mall, which it co-owns.Still, the group expects to swing back to profitability when it publishes its annual results for 2026 on July 31 and is forecasting distributable earnings of R40.1m-R47.3m. (Dorothy Kgosi) But despite the expected turnaround, the group will not declare a distribution for the year. It last rewarded shareholders in July 2022, and its shares have been under pressure since then.Like Delta Property Fund, Accelerate has turned to asset sales to repair its balance sheet. Delta, which last paid a dividend in 2019, is working with its lenders to restructure debt, lower its loan-to-value ratio and improve its interest cover ratio before it can resume distributions.Accelerate’s restructuring gathered pace in March after it secured R2bn via a capital raising and asset disposals to reduce debt. Since June 2024, it has streamlined its portfolio and channelled fresh capital into Fourways Mall as part of its strategy to reposition the business around higher-quality retail assets.The stock is trading at 45c a share and has lost more than 90% of its value since listing, according to Iress data.
