File picture: James White
File picture: James White

Arrowhead's CFO resigns after unauthorised use of company funds

By Edward West Time of article published May 30, 2019

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JOHANNESBURG - Arrowhead Properties said yesterday that its chief financial officer Imraan Suleman had resigned, following an instance of unauthorised use of company resources.

“The board is satisfied the issues identified have no financial implications for the company and in no way go to the content or integrity of the company’s financial results, the group said yesterday, the same day it released results for the six month to end March, with showed the company reported a headline earnings loss over the period.

Arend de Kock has been appointed acting chief financial officer. The company had not responded to further questions on the issue at the time of going to press yesterday.

Arrowhead holds a portfolio of retail, office and industrial properties valued at R5.7billion. As at March 31, it also held a 59.6percent interest in Indluplace Properties, which owns residential properties. Arrowhead also held a 53.3percent shareholding in Gemgrow Properties, which owns commercial properties. A potential merger of Gemgrow and Arrowhead was announced on April 10, 2019.

Arrowhead also holds 16.4 percent of Rebosis Property Fund and an 8.6 percent interest in Dipula Income Fund.

Arrowhead directors said the protracted uncertainty in the economy was reflected in higher vacancies and lower rental rates.

“Notwithstanding the challenging environment and the pressure that certain of our listed holdings have come under, Arrowhead is pleased with the performance of its direct property portfolio, which has been in line with expectations,” they said.

Arrowhead’s headline and diluted earnings per share amounted to a R32.60 loss for the period, compared with R11.58 at the same time in 2018. An interim dividend of 27.8c per share was declared.

Management said they had experienced positive letting activity and performance from Arrowhead’s direct portfolio.

Vacancies increased from 7.9 percent at the end of September 2018 to 8.6 percent at March 31, in line with expectations, they said.

Arrowhead shares closed 3.40percent lower on the JSE yesterday at R3.69.


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