Resilient sticks to dividend policy

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Resilient sticks to dividend policy

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Published Date: 2020-05-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Resilient sticks to dividend policy

The REIT says it will also write of its remaining investment in Edcon, which entered business rescue at the end of last month.

Resilient Real Estate Investment Trust (REIT) says it plans to continue to declare and pay dividends despite tough conditions facing the property sector. A number of other property groups have withdrawn their dividends due to the current turmoil caused by Covid-19.

In a business update, Resilient said it would apply the same principles to future dividends as in the past. It increased its interim dividend for the six months to end-December by 1.6% to 267.96c a share. However, in March it withdrew dividend guidance of 5% growth for the year to end-June due to uncertain market conditions.

The REIT said it would receive a dividend of R43 million from associate Lighthouse Capital later this month and distributable earnings for the period to end June would include any dividend from NEPI Rockcastle, in which it also holds a stake. As NEPI had withdrawn its 2020 earnings guidance, Resilient said it would delay the release of its annual results to 26 August, after NEPI had reported.

Due to Edcon's decision to file for voluntary business rescue late last month, Resilient said it would fully impair the remaining R46 million of its investment in the retail group in its final results. Meanwhile, it said it was actively interacting with its other tenants, both directly and through The Property Industry Group.

Its shares closed 5.5% higher at R37.65 on Friday.





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