Spear Reit shines in the Cape
Cape Town-based property group increases interim dividend and forecasts distribution growth of 9%-11% for the year
Cape Town-based property group Spear Reit has increased its dividend by nearly 13% despite tougher trading conditions, particularly in the hospitality sector. The company declared a dividend of 41.73c per share for the six months to end-August, beating its earlier forecast. The company also forecast dividend growth of between 9% and 11% for the full financial year, which ends in February 2019. Spear, which was listed in November 2016 by real estate sector stalwart Mike Flax, who is also the company’s chair, has appealed to investors who want better income growth than the general industry. Over the past two years, its dividend has grown by 9% and 12% in each reporting period.
CEO Quintin Rossi said Spear had established itself as the only Western Cape-focused property group listed on the JSE and had become popular in an industry where larger capital growth funds were struggling to meet market expectations. These companies have only mustered dividend growth that is in line w...