Arcona Capital’s Managing Board has recommended its Arcona Property Fund N.V. make a final 2017 dividend payment of €0.14 to shareholders, following what it describes as a record-breaking year for the fund. A total of 35 percent of the operating result would be distributed according to the plan, with an interim dividend of ten euro cents having been paid in August 2017. The final dividend payment for 2017 would be €0.14, which shows a dividend yield of 3.2 percent using the year-end share price of €7.40.
The fund grew in size last year from €83m €99m through the acquisition of three regional shopping centers and a modern office building in Poland. Two assets in Slovakia and the Czech Republic were sold well above the appraisal value. The fund’s operating result for 2017 amounted to €2.13 million compared with an operating result of €748,000 in 2016.
“For the period up to 2022, the fund aims to grow to a size of €500m and to achieve a dividend yield of 8 percent on the prevailing share price, and we are optimistic that in 2018 further steps towards achieving these objectives will be taken. We are specifically targetting the acquisition of shopping centers and office buildings with lot sizes of €5m to €15m in regional centres,” said Guy Barker, Managing Director of Arcona Capital. “For the coming year, the Managing Board foresees the potential for an expansion of the portfolio through acquisitions by approximately € 50 million.”
