Arrowhead Properties Limited. JSE: AWA

Arrowhead shares

Background of Arrowhead

  • Arrowhead Property Limited is an internally managed property loan stock company was formed in 2011 and debuted in the Real Estate Sector of the Johannesburg Stock Exchange (JSE) in December of the same year. The company was converted to a Real Estate Investment Trust (REIT) in October 2013. Arrowhead owns adverse portfolio of more than 190 commercial, industrial, retail and residential properties throughout South Africa, with an asset value of more than five times more than when the company was first listed. In its short history the company has exceeded all expectations in terms of its financial data.

  • Initial aims were to increase market cap to R 3.5 billion, but market cap today stands at more than R8.4 billion. The company aimed to purchase R 1 billion worth of commercial properties, but currently owns R 8.6 billion worth of properties, including listed securities. Arrowhead has received remarkable returns on capital expenditure.

  • The group’s entire residential portfolio was listed separately on the JSE in 2015, as Indluplace Properties Limited, which Arrowhead holds a 70% stake in.

  • Arrowhead’s main objective is to pay increasing income returns to investors, through escalating rentals, renewal of leases, renting of vacant space, managing and reducing costs, acquiring revenue enhancing properties and fostering the growth of dividends.

  • Arrowhead share prices yielded good returns in 2015, with investor distributions increasing by 13%.

Arrowhead Shares Growth Driver

  • Risk within Arrowhead is managed by having a highly diversified portfolio in terms of location throughout South Africa, different property sectors, spread of tenants and number of properties.

  • Arrowhead’s short to medium-term aims are to increase their portfolio to more than R 10 billion, with the group well-positioned to identify income enhancing acquisitions whilst improving cost savings.

  • Whilst the depreciation of the Rand against major currencies affected the investment and financing strategies of most companies on the JSE’s property sector (SAPY), Arrowhead has managed to grow its distributable income at above average levels. The company’s main portfolio has grown by 6.2% more than the SAPY average.

  • Revenue growth was boosted by recent acquisitions – in particular the purchase of property company Vividend Income Fund – and year-on-year rises in lease prices.

Arrowhead Group Investor Tip

  • Arrowhead’s charts forecast that Arrowhead share prices will make strong gains in future. The company predicts that the net property income of its commercial properties will grow by around 8.5% in 2016, with share distributions increasing by between 8% and 10%. The fast-growing portfolio of residential properties managed by Indlulaplace should result in distributions in excess of 12%, whilst shares of BBE subsidiary Dipula should contribute around 10% growth.

  • Despite challenging economic conditions, the company’s strong growth pattern is set to remain on an upward trajectory, making Arrowhead shares one of the best bets in the JSE property stocks today.

Arrowhead Major Shareholders

Government Employees Pension Fund, Investec Asset Management Holdings (Pty) Ltd, Nedbank Group and Coronation Fund Managers.

  • Sector

    Financials

  • Industry

    Real Estate
  • Sub industry

    REIT

How to buy Arrowhead Group Shares

  • Arrowhead : How to buy Arrowhead Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Arrowhead Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Arrowhead Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Arrowhead Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Arrowhead.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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