Investors unimpressed by disappointing dividend forecast by Nepi Rockcastle
East European shopping centre owner is focused on winning back the love of its investors after Resilient group scandal
Eastern European shopping centre owner Nepi Rockcastle's share price slipped 5%, the most decline in three months, as the company gave a disappointing dividend outlook for 2019. The company, which owns €5.9bn worth of shopping centres across nine countries, achieved dividend growth of 9.54% for the year to December 2018, shy of its 10% target. But CEO Alex Morar said growth would ease to around 6% in 2019. He said Nepi Rockcastle's portfolio would grow at about 5% on an organic basis and that a further 1% could be added to the growth in dividends through new developments coming online in 2019. "I think 6% would a very solid income return for our investors as they are mostly South African and we pay out our income in euro. So I don't understand why our share price has come down today like it has. You won't 6% driven almost purely by existing assets, from other European property companies ," said Morar. The stock fell 5% to R120.50 on Wednesday, its most since a 14% drop on November 2...
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