Western Cape-focused property group Spear Reit has opted to proceed with a final dividend payment of about R94m, saying it is confident in the quality of its portfolio even as Covid-19 batters the property sector.
The group has a portfolio worth about R4.18bn, and has grown aggressively since being listed in late 2016 by SA commercial real estate veteran Mike Flax. Its final dividend of 47.02c for the year to end-February is about a 5% increase year on year.
“The core portfolio of Spear remains defensive in nature, underpinned by strong lease covenants and high-quality tenants,” the group said, adding, however, it was likely not to be immune from tenant failures.
As a result, the group has opted not to provide forward-looking guidance.
Correction: May 14 2020
An earlier headline of this article incorrectly stated Spear was making a R64m dividend payment, when this is in fact R94m.
With Alistair Anderson