Gerald Leissner, CEO of Arrowhead
Arrowhead Properties, owner of a diverse commercial and residential property portfolio and the only listed property counter to pay quarterly distributions, today announced that it will pay unit holders 18,7 cents per A unit and 18,7 cents per B unit (i.e. 37,4 cents per combined unit) for the three months to 31 March 2015.
This represents a total distribution for the six months ended 31 March 2015 of 74,49 cents per combined unit (37,09 cents per combined unit was paid in the previous quarter) an increase of 19,03% on the comparative prior year six months.
Mark Kaplan, Chief Operating Officer, commented: “Arrowhead continued to trade well during the six months under review. Core portfolio growth of 9% for the period, together with income from revenue enhancing acquisitions have once again enabled Arrowhead to pay growing distributions above those paid by many of our peers. We have increased our forecast distribution for the year to R1,49 per combined unit which is 12% up on last year.”
During the six months ended 31 March 2015, the Company acquired five properties for R257 million and disposed of two properties for R47 million. 60 additional residential properties, to the value of R832 million have been acquired since the end of the reporting period.
Arrowhead’s portfolio of 155 commercial properties, valued at R7,3 billion was 91% let at the end of March 2015, marginally down from 94% at the end of September 2014. The reduction is mainly as a result of vacancies created following Ellerines being placed into business rescue. Most of these vacancies have been re-let post period-end.
Commenting on the interest rate environment, Imraan Suleman Arrowhead’s Financial Director said: “Arrowhead is now 32% geared with interest on 96% of our debt hedged. We have also improved the term of our debt.”