Arrowhead revises guidance on lower Indluplace forecast
The landlord said its dividend per share for the year would be about 56c, down from the previous forecast of 57.73c
Arrowhead Properties on Monday lowered its annual dividend forecast after its subsidiary, Indluplace Properties, issued a dividend warning on Friday.
Indluplace, which is 60% owned by Arrowhead, said its dividends per share for the year to end-September 2019 were expected to fall by about 20%. It previously forecast a reduction of up to 10%.
Arrowhead said previously that after taking into account the effect of Edcon’s restructuring programme, it expected its dividend for the year to end-September 2019 to be 57.73c a share, excluding any contribution from its stake in Rebosis Income Fund.
“Arrowhead’s direct property portfolio has continued to trade well, and in line with expectations, in difficult circumstances,” it said on Monday.
However, because of the lower guidance from Indluplace, Arrowhead said its dividend per share for the year would be about 56c.
Arrowhead’s results for the six months ended March 2019 are due on May 29 2019.
In April, Arrowhead said it was considering a merger with another subsidiary, Gemgrow.