Texton warns of weaker distribution


Texton warns of weaker distribution

Published Date: 2019-09-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Texton warns of weaker distribution

The property fund says weak macroeconomic conditions in SA and the UK have had a big impact on its 2019 dividend.

Texton Property Fund says its full-year distribution will be as much as 26.2% lower due to weak conditions for the SA and UK property markets.

In a trading statement, the real estate investment trust said its dividend per share for the year to end-June would be between 65.9c and 72.8c, a decrease of 18.5% and 16.2% from last year's 89.31c.

Texton said the difficult economic climate in SA placed businesses under pressure over the year, with more companies contracting, consolidating space and even closing. This had worsened already unfavourable property fundamentals in a highly competitive market characterised by no demand and a general oversupply of space.

In the UK, economic growth stalled in the second quarter of the year, with 2020 growth forecasts revised downwards due to the uncertainty surrounding Brexit, which was likely to further devalue the pound and drive inflation through higher import costs.

Texton's shares closed unchanged at R3.10 on Friday. The trading statement was released after the close of trade. Its results are scheduled for release tomorrow.

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