Texton hits the bottom as CEOs turn the exit stiles
Texton Property Fund, which has had four CEOs in as many years, has released the worst set of financial results of any property company in the current reporting season. The real estate investment trust, which struggled with increased vacancies at its office assets in SA as well as devaluations in its UK retail portfolio, reported that its dividend shrank 13.1% in the year to June. The R180m cost of internalising its management company also weighed on its performance during the reporting period, results showed on Monday.
Texton was formed in 2014 after the takeover of SA-focused Vunani Property Investment Fund. It was then externally managed by Texton Property Investments which helped it invest in the UK. The idea was to grant investors diversification across the two regions. Executives including Nosiphiwo Balfour, the latest CEO to resign, and Nic Morris before her, spent two years selling many of its underperforming SA assets. The strategy included achieving an even SA-UK spl...