Advisory costs of R12 million incurred because of competing offers for Fountainhead Property Trust’s assets from listed Growthpoint and Redefine that were subsequently withdrawn, dented the listed property trust’s distributions in the 11 months to August.
Fountainhead reported yesterday a 2 percent decline in distributions a unit to 50c in the 11 months to August compared with the comparable period last year.
The trust changed its financial year end. Len van Niekerk, Fountainhead’s chief executive, said the consolidation of ownership at Centurion Mall and the expensing of interest on the rebuild of the Blue Route Mall were initially dilutive investments and also weighed on distribution growth.
He said despite tough market conditions, Fountainhead’s portfolio, excluding properties under development, showed rental growth of 6.7 percent and positive rental reversions of 4.5 percent on renewed leases across the portfolio.
Fountainhead units closed 1.85 percent lower at R7.95 on the JSE yesterday.