SA’s sluggish growth takes its toll on Octodec
The Gauteng-focused property group says SA’s subdued economic performance has weighed on results
Gauteng-focused real-estate investment trust (Reit) Octodec Investments said on Monday that SA’s sluggish economic growth weighed on results in the year to August. CEO Jeffrey Wapnick said Octodec, which invests largely in the inner cities of Johannesburg and Pretoria, was operating in the toughest economic conditions since it listed in 1990. Octodec released financial results that, while flat, were disappointing for investors who have relied on the company for consistent dividend growth. Group net profit available for distribution grew 0.9% to R541m during the period, with the group holding its dividend steady at 203.4c per share, in line with previous guidance. Its dividend for the year to August 2017 was 203.1c. Wapnick said he expected dividend growth for the 2019 financial year to be similarly weak unless there were a sudden uptick in the performance of the South African economy. "It worries me that we've been unable to give investors the kind of dividend growth we should be gi...
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