Hyprop guides on lower earnings

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Hyprop guides on lower earnings

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Published Date: 2020-09-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

Hyprop guides on lower earnings

The shopping centre owner says it is considering different options to settle its interim dividend and the declaration of a final distribution.

Hyprop has guided investors to expect a big drop in full-year distributable income. And it says it's still mulling various options for the settlement of its interim dividend and whether to declare a final distribution for the year.

In a trading statement, the shopping centre owner said distributable come for the year to end-June would be 31-36% lower than the 745c per share it achieved last year. That's worse than the range it previously gave - before it withdrew guidance altogether in April.

In March, Hyprop, which is listed as a real estate investment trust, postponed payment of its interim dividend due to the uncertainty the Covid-19 outbreak had introduced to its portfolio of properties. It said holding back the 309c per share dividend would strengthen its ability to weather the difficult conditions that lay ahead. While it had planned to pay it by 5 October, along with its final distribution for the year, the Financial Services Conduct Authority extended the period for REITs to pay their distributions from four to six months from the end of their year end. Under the JSE's listing requirements, REITs are required to distribute at least 75% of distributable profits.

In order to retain its REIT status, Hyprop said it was now required to make its distribution by the end of December at the latest. In the meantime, it said its balance sheet remained healthy and all banking covenants were met as of the end of June.

Hyprop expects to release its results after market close on Monday. its shares rose 7.6% to R18.18 yesterday.





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