Arrowhead Properties warned the market that its annual dividend would shrink in its September 2018 financial year, sending its share price down nearly 10% on Wednesday. This is the first time in the diversified real estate company’s seven-year history that its dividend payout will not grow. Most other listed property funds have managed to forecast positive dividend or distribution growth for the 2018 financial year. This is despite concerns that groups focused on SA are struggling to grow income pay-outs and that dividends could fall in 2019 or beyond. Many of these companies have paid out part of their dividends from capital profits and other one-off items rather than from distributable earnings. Arrowhead forecast that its dividend would shrink 6.5% for the year ended-September 2018. It made the forecast while releasing its financial statements for the year to September 2017. Arrowhead declared a dividend of 87.52c per share for the period, resulting in growth of 6.02% from the pr...
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