CAPE TOWN - Accelerate Property Fund anticipates negative distributable income growth for the year ended March 31, 2020, resulting in a 10-15 percent reduction in distribution per share compared with the 2019 financial year, the real estate investment trust said Monday in a pre-close statement.
In the previous financial year the distribution was heavily weighted in favour of the interim period, so the current interim period distribution per share was anticipated to be between 16-22 percent lower compared to 27.26 cents per share at September 30, 2018.
In addition, taking into account the weak economic environment, the board planned to retain an additional percentage of Accelerate’s distributable income for reinvestment, to ensure long-term sustainability and profitability. The policy is to retain up to a further 5 percent of the
distributions per share, depending on the circumstances.
“The Company is taking corrective measures to ensure improved quality and long-term sustainability of the fund’s assets, it’s income stream, as well as controlling its operating costs,” Accelerate directors said.