Fourways Mall part-owner Accelerate Property Fund has cautioned shareholders it expects a loss of more than R70m for the 12 months to end-March and will thus not declare a distribution to shareholders.
The company said in a trading statement on Wednesday the decision to withhold a payout was driven by cash flow constraints, anticipated working capital needs and ongoing capital expenditure requirements.
The distributable loss for the financial year is forecast at R70.6m-R72m, up from a R9.4m loss reported in the previous corresponding period.
“The reduction is mainly attributable to reduced revenue following the removal of headlease income from related party transactions, as well as increased operating expenses and higher interest costs,” Accelerate said.
Earlier this month, the group said it would proceed with a R100m rights offer despite not having finalised a crucial settlement agreement that will determine the recoverability of R800m in related-party receivables — a key issue that continues to delay the release of its financial results.
The settlement involves Fourways Mall co-owner Azrapart and other parties after the original agreement collapsed last year due to unfulfilled suspensive conditions. At the time of the announcement earlier this month, the group said all parties remained engaged and negotiations were continuing.
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