(Killarney Mall/Facebook/Supplied)
Octodec Properties, which has a roughly R11 billion diversified portfolio that includes Killarney Mall and Woodmead Value Mart, said on Tuesday it has kept its interim dividend steady despite pressure from both municipal failures and higher operating costs. But, while the group is still confident in the quality of its assets, it has decided not to provide second-half guidance due to the risks posed by SA’s elections and elevated interest rates.
Distributable earnings fell 6.4% to almost R220 million in the six months to end February as the group grappled with high administered costs, such as water and electricity, as well as load shedding and municipal failures that have forced it to spend more on its assets.
But a strong showing from its residential interests helped lift revenue by about 3%, and the group kept its interim dividend steady at 60c per share – about a R160 million payout.
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