Octodec expects drop in full-year dividends
Company hopes to unlock value for shareholders as political risk and uncertainty settle
Octodec Investments, which owns properties in Tshwane and Johannesburg worth R13bn, says full-year dividends will decline as trading conditions remain tough because of the sluggish economy. The landlord said on Monday it would pay shareholders 101.7c per share for the six months to end-February, the same amount as a year before. “The dividend was impacted by pressure on rental income growth as well as an increase in property operating costs,” Octodec said.
For the second six months ending August, dividends would be “slightly lower”, meaning its dividend for the full year would probably fall by about 2%.Group CFO Anthony Stein said Octodec was expected to pay various costs in the second half of the financial year. “Interest costs are increasing and we expect to enter new swop rate contracts on interest expenses,” he said.From April 1 national retailer Edcon’s agreement with Octodec whereby it would pay less rent in order to survive, would kick in. Edcon is paying R400,000 le...
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