JSE-listed real estate investment trust (Reit) Arrowhead Properties on Wednesday announced the resignation of its CFO Imraam Suleman, following an instance of unauthorised use of company resources.
The company has appointed Arend de Kock as interim CFO in Suleman’s place.
The Reit assured stakeholders in a statement that the issues identified had no financial implications for the company and did not affect the interim results for the six months ended March 31.
In what CEO Mark Kaplan told Engineering News Online was a challenging economic environment during the reporting period, vacancies increased from 7.9% in September 2018 to 8.6% in March. He expected an economic revival “some time” in the future, following the May national and provincial elections.
“As a 100% South African-focused fund, the environment in which Arrowhead operates remains very difficult, but the company has seen an uptick in leads post the election and there is cautious optimism that, with strong leadership and increased policy certainty, economic conditions can improve over time.
“Arrowhead management is confident that it has made the correct, although difficult, strategic decisions, in tough macroeconomic circumstances to position the company for sustainable growth going forward that will create long-term sustainable value for shareholders,” noted Kaplan.
Arrowhead currently has a 59.6% stake in Indluplace, which owns a portfolio of residential properties, 53.3% stake in Gemgrow Properties, 16.4% in Rebosis Property Fund and 8.6% interest in Dipula Income Fund.
Arrowhead owns 49 commercial properties directly, 163 commercial properties indirectly through Gemgrow and 176 residential properties indirectly through Indluplace.
Arrowhead announced a proposed merger with Gemgrow in April, which Kaplan said should be finalised by September, pending signed implementation agreements between the companies in June and a stakeholder vote in August.
Kaplan explained that it remained in the Reit’s long-term plan to dispose of its holdings in Rebosis and Dipula, with R45-million in disposals expected to close by year-end, and a further R330-million worth of disposals in discussions.
Arrowhead declared an interim dividend of 27.8c apiece for the reporting period, with a full-year dividend of 56c apiece anticipated for the financial year ending September. The Reit reported an interim dividend of 40.43c apiece for the six months ended March 2018.