Arrowhead faces multiple risks from shops closing over Covid-19 pandemic

CAPE TOWN – Arrowhead Properties yesterday said that multiple, unexpected tenant failures, the result of shops closing due to the coronavirus keeping customers out was the major risk to results for the year ended September 2020.

“Fortunately, we have not experienced any major tenant failures in the financial year to date, significantly ameliorating this risk. We remain cautious and ready to act in the face of any unexpected events,” management said in a pre-close briefing yesterday.

The group said the operating environment remained difficult, but there had been no other material surprises in the first five months and the portfolio was performing in line with expectations.

It said it remained “cautiously optimistic” that the dividend for the financial year would be in line with guidance provided in September.

The group is disposing of its smaller properties (below R15million), and plans to remain only in properties with a high rental demand and which were capable of growth over the medium to long term.