Fourways Mall developer Accelerate stocks fall 20% after warning of dividend slump
The stock eased 18.24percent on the JSE yesterday to close at R1.39 as the group warned shareholders that its interim dividend fell sharply to 16.129cents during the six months to end September from 27.26c in the comparative period last year after consideration was given to the asset disposal programme, and additional payment commitments that might arise from the Fourways Mall equalisation purchase price.
The group said revenue for the six months to September 30 fell 6.5percent to R564million compared with the same period in 2018 due to factors related to the tough property market, its directors said yesterday.
It said income pressure arose from higher-than-expected rental reversions, additional assistance to tenants, increase in the cost-to-income ratio, additional spend on assets, costs of exiting and entering cross-currency swops, higher rates and utility costs, delays in the start of the Foreshore development and higher-than-expected funding cost for the Fourways equalisation.
This was in spite of initiatives to reduce costs and fill vacant space.
Source: iol.co.za
