Accelerate Property Fund expects its dividend to fall severely for the year to end-March 2023
JSE-listed Accelerate Property Fund which owns the majority of Fourways Shopping Centre, which is the largest shopping centre in Africa at 178,000m2 said this week that its dividend payout would disappoint when it released results this year.
"Upon release of the Company’s financial results for the year ended 31 March 2022 a final distribution of 21,98051 cents per share was declared for this reporting period. At that point in time in excess of 80% of the Company’s shareholders elected the distribution reinvestment alternative (DRIP) instead of receiving a cash distribution," it said.
The significant take up of the DRIP resulted in an increase on the company’s number of shares in issue by about 26.5%.
Due to increase in the number of shares in issue, Accelerate told its shareholders that the distribution per share for the period ending 31 March 2023 was expected to be more than 15% lower than the distribution per share for the previous corresponding period. The Company did not have reasonable certainty of the range. A another trading statement would be released once reasonable certainty was obtained, it said.
The Company wanted release its results for the year to end-March on or about June 26 2023.
Accelerate's share price has fallen 84.35% over the past five years. It closed at R0.95 on Friday, leaving the company with a market capitalsiation of R1.2bn. The group is small cap property fund and is being touted as a takeover target.