Arrowhead revises distribution guidance


Arrowhead revises distribution guidance


Published Date: 2019-05-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

Arrowhead revises distribution guidance

The real estate investments trust says its full-year distribution will be slightly lower than guided after Induplace warned of a weaker dividend.

Arrowhead Properties says a bigger-than-expected decline in subsidiary Indluplace's dividend this year will have a relatively small impact on its own distribution.

In a trading statement, the real estate investment trust said it now expects its dividend of the year to be about 56c per share, down from the 57.73c it previously guided investors to expect. For the six months to end-March, it expects to pay a dividend of 27.8c, excluding any contribution from associate Rebosis Income Fund.

On Friday, Indluplace, which invests in residential property, said it's dividend full-year dividend was likely to be down by 20% due to difficult operating conditions and vacancies at its Highveld View property in Witbank. Arrowhead owns 60% of Indluplace.

Arrowhead said its direct property portfolio continued to trade well and in line with expectations in difficult circumstances.

Last month, it announced plans to merge with Gemgrow in a move that the two real estate investment trusts say would create a simpler group structure and provide benefits for both sets of shareholders. Their boards of directors have already agreed, in principle, to a potential transaction that may result in the reverse takeover of Gemgrow by Arrowhead.

Your witter quotes embed code goes here for the article


Similar Stories