Tower Property Fund’s dividend slips 9.5%
The Cape-based property group declares a dividend of 36.83c per share for the six months to November, almost 10% lower than year before
Tower Property Fund will sell some of its local assets in a bid to decrease its debt, CEO Marc Edwards said on Thursday. The group, which also has assets in Croatia, says it is waiting for confidence to return to the struggling South African economy before it makes new acquisitions. Tower, which owns the mixed-use Cape Quarter development, declared a dividend of 36.83c per share for the six months to November, results showed on Thursday, 9.5% lower than in the corresponding period. Edwards said Tower’s dividend growth would ease while the company decreased its debt position and upgraded its assets. It was also looking to improve its balance sheet and net asset value. Tower’s debt position or loan-to-value (LTV) sat at 33% at the end of the reporting period. Edwards said Tower’s change of strategy, from an income-focused fund to one equally focused on income and tangible net asset value growth, was taking shape. He said he wanted the LTV to remain “in the lower 30s”, as this would be...
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