Shareholders of embattled property stocks Resilient Reit and Fortress Reit (B shares), which have both recorded share price losses of 62% in the year to date, will have to be satisfied with far more subdued dividend payouts than the double-digit growth they have become accustomed to in recent years. That’s the message that emerged last week at Fortress and Resilient’s much-awaited annual results presentations and follows the restructuring of both companies’ balance sheets. The latter was prompted earlier this year by market criticism of the cross-holding between Resilient and Fortress and how they distributed the interest accrued on loans advanced to an empowerment education scheme known as the Siyakha trusts. The sell-off of Resilient and Fortress shares was accelerated by accusations of insider trading and share price manipulation, now the subject of a protracted probe by the Financial Sector Conduct Authority (FSCA).

Though the dividend growth numbers reported last week for...

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