CORPORATE ACTION
‘Irrational’ Fortress vote leaves investors fuming
A deadlock over Fortress’s listing structure may herald a long-term dividend drought
A dividend drought will continue for shareholders in property company Fortress Reit for at least another year — and it appears Africa’s largest fund manager, the Public Investment Corp (PIC), is to blame.
It’s a major obstacle for Fortress, since investors rely on the JSE’s property companies to pay regular dividends. But Fortress says it can’t pay dividends until it collapses the company’s complicated dual-shareholding structure, in which it is split into A and B shares. The pandemic hadn’t been kind to Fortress’s office parks and retail properties in particular, so it wanted to collapse the split structure to pay dividends to both sets of shareholders. ..
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