JOHANNESBURG, Oct 10 (Reuters) - South African specialist logistics property group Equites on Tuesday reported a 20% drop in its half-year distribution to shareholders, which it has partly blamed on higher interest rates.
The group announced a distribution of 65.37 cents per share for its half-year ended Aug. 31, down from 81.58 cents a year earlier, and said it remained on track to meet full-year guidance for a distribution of 130-140 cents per share.
Like other real estate investment trusts (REITs), higher interest rates make it more expensive for Equites to finance infrastructure.
"Despite the challenges posed by a capital-constrained and higher interest rate environment, management remains confident in its ability to drive sustainable value creation for shareholders over time," the company said in a statement.
South Africa's central bank held its main interest rate at 8.25% for a second consecutive Monetary Policy Committee meeting in September.
But 10 consecutive hikes before that had taken the rate to a 14-year high, putting pressure on both companies and households.
(Reporting by Tannur Anders; editing by Jason Neely, Kirsten Donovan)
