Octodec Investments Limited

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Octodec Investments Limited (2021-09)
  • Octodec Investments Limited
  • Year : Sep 2021
3 Tokens
USD 300.00
Summary

Cash preservation measures undertaken have supported Octodec’s liquidity profile. These include the FY20 partial dividend retention and limit on capital expenditure to essential requirements. The REIT also has around R315m in undrawn facilities. This compares to relatively low refinancing requirements. Accordingly, GCR estimates a robust liquidity coverage ratio in excess of 3.0x over the next 12 months, thereafter easing towards the 1.0x level due to some sizeable debt maturities falling due during FY22 and the assumption that larger dividend payments will resume.

Additional Information

GCR has included a positive peer adjustment to better reflect the credit strengths of Octodec, being the strong risk protocols underpinning its generally stable operating performance, which are not apparent in a review of traditional portfolio quality and performance metrics. That said, protracted earnings underperformance could see GCR remove this adjustment.

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