HOTEL-focused real estate company, Hospitality Property Fund, has started to turn the corner. The company saw its B shares rise about 11% on Monday, after it announced that it expected its distributions to have grown steadily in the six months to June.The group’s A shares rose 3% upon the news of boosts in distributions. Hospitality has struggled to earn profits during the years following the 2010 Soccer World Cup’s hotel boom. But the first half of 2016 has seen an improvement in the group’s fortunes. Income has been boosted by growth in tourism, especially in Cape Town, owing to a weak rand.Hospitality uses an A and B share ownership structure. Investors who own A shares are paid dividends first — capped at the consumer price index or 5%, whichever is lower. B shareholders receive the balance.Hospitality said on Monday the combined A and B share distribution for the six months to June was expected to be 21.8%-22.9% higher than the previous corresponding period, or between 96.15c a...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.