Tower interim results November 2017
Revenue for the interim period lowered to R212.2 million (R222.7 million) whilst net operating profit fell to R149.7 million (R294.5 million). Profit for the period attributable to equity holders took a knock to R186.9 million (R370.9 million). In addition, headline earnings per share dived to 29.6 cents per share (66.8 cents per share).
Notice is hereby given that a gross cash dividend of 40.70120 cents per share (dividend number 9) has been declared from income reserves in respect of the six months ended 30 November 2017. In accordance with Tower's status as a REIT, shareholders are advised that the distribution meets the requirements of a qualifying distribution for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (Income Tax Act). The distribution on the shares will be deemed to be a dividend for South African tax purposes in terms of section 25BB of the Income Tax Act.
A number of short-term initiatives should positively impact Tower's returns and strengthen the financial position of the company. These include:
* the successful resolution of the Agrokor/Konzum tenancy in Tower's Croatian properties;
* the conclusion of the Spar lease over the same properties detailed above;
* the ringfencing of Tower's Croatian properties into Tower International and raising additional external equity capital to fund Tower International; and
* the completion of the Piazza and Napier Street Developments at Cape Quarter.
The successful conclusion of the last two of the four projects detailed above will result in material cash flow injection into Tower which will strengthen the company's financial position. The Croatian net property income is expected to remain flat for the year ahead. South African net property income is anticipated to grow between 4% and 6%. This should translate to distribution growth in the fund of 6% to 8% for the year ending 31 May 2018, which is in line with guidance previously provided. This assumes that current trading conditions remain as is and that there are no major tenant failures.
Most read today
Most read yesterday