Newly listed Spear Reit, the Western Cape-based property fund brought to the JSE by a consortium led by industry veteran Mike Flax in November 2016, has delivered better-than-expected maiden results. On Wednesday, the company declared its first dividend of 23.51c per share for the four months ending February, which is 16.75% ahead of the prelisting forecast of 20.14c per share. The outperformance was supported by a yield-accretive acquisition, lower-than-expected debt funding costs and above-forecast income from Spear’s hotel operations because of Cape Town’s buoyant tourism industry. The company owns the Double Tree by Hilton in Upper Eastside, Woodstock, and recently agreed to acquire another upmarket city centre hotel, 15 on Orange. Most of Spear’s office, retail and industrial properties are located in and around Cape Town. It recently acquired a Virgin Active gym in George. Flax, a former director of Redefine Properties, was also behind the listing of Spearhead Property Holding...

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