Octodec puts development pipeline on ice
Property group that invests largely in Johannesburg and Pretoria inner cities says it is operating in the toughest economic conditions since listing in 1990
Property group Octodec Investments is unable to develop its pipeline due to the sluggish economy, which weighed on its full year financial results, it says. CEO Jeffrey Wapnick said Octodec, which invests largely in the inner cities of Johannesburg and Pretoria, is operating in the toughest economic conditions since it listed in 1990. Octodec released financial results that, while flat, are disappointing for investors who have relied on the company for consistent dividend growth.
Wapnick said Octodec would have to be highly conservative for another financial year as his team waits for momentum to return to SA’s economy, which has entered a technical recession. Earlier in October the IMF cut its growth forecast for SA in 2018 from 1.5% to 0.8%. It said the economy was expected to grow at 1.4% in 2019. Octodec, which owns a R12.7bn property portfolio including Killarney Mall, declared a dividend of 203.4c for the year to August compared with 203.1c in the 2017 financial year......
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