Arrowhead swings to half-year profit

Arrowhead, a property investment company, has shown resilient performance in the face of challenging economic conditions caused by the COVID-19 pandemic. The company's Chief Financial Officer, Junet Lemalia, attributes the strong performance to prudent financial management and strategic investments in the property portfolio. Despite facing difficulties due to the impact of the lockdown and tenant losses, Arrowhead has managed to stabilize its property portfolio and post promising results. One of the key highlights of the financial report is the successful reduction of debt by close to a billion and a half over the last two years, demonstrating the company's commitment to maintaining a healthy balance sheet. The decision to withhold the interim dividend, as explained by Lemalia, is a precautionary measure amidst the uncertainty surrounding the ongoing waves of COVID-19. The company aims to make a final decision on dividends during the year-end results announcement, aligning with its previous approach during the pandemic. Lemalia emphasizes the importance of maintaining cash reserves to navigate potential challenges that may arise, especially in light of the unpredictable business environment. Vacancies in Arrowhead's portfolio have seen a slight increase, standing at 11% compared to 8.6% in September. Despite the challenges in the office space, Arrowhead remains optimistic about its relevance in the future. While acknowledging the current trends of office-to-residential conversions, the company believes in the enduring value of office spaces and the necessity of fostering a collaborative work environment. Regarding the company's investment in renewable energy, specifically solar power, Lemalia cites multiple benefits. In addition to addressing issues like load shedding and high electricity costs, the move towards renewable energy aligns with Arrowhead's ESG initiatives and offers attractive returns. The tax benefits associated with solar energy investments further enhance the financial advantages for the company, contributing to a reduction in operational costs and reinforcing its commitment to sustainability. In conclusion, Arrowhead's proactive strategies and resilience in the face of challenging market conditions position the company for a bright future. By focusing on prudent financial management, strategic investments, and embracing renewable energy solutions, Arrowhead continues to demonstrate its commitment to long-term sustainability and success.