Vukile Property Fund changes dividend policy due to Covid-19

Vukile’s flagship Spanish shopping centre, the El Faro centre in Badajoz, Spain.
Vukile’s flagship Spanish shopping centre, the El Faro centre in Badajoz, Spain.
Image: SUPPLIED

Vukile Property Fund, which owns malls in South Africa and Spain, said on Tuesday it is unlikely to make an interim dividend payment in its 2021 year, and has changed its dividend policy to preserve cash amid the Covid-19 pandemic.

The group is waiting for consultations with the JSE before deciding on a final dividend for the year to end-March, when distributable earnings per share rose 3.2% to 187.25c.

Vukile also intends to adopt a variable dividend payout ratio and will no longer pay out 100% of distributable earnings to enable greater capital flexibility and cash retention.

The group will also wait for the conclusion of discussions between the JSE  and SA Real Estate Investment Trust (Reit) Association, regarding the listing requirements for Reits, before making a decision on a final dividend for its 2020 year.

Most listed property companies are Reits, which have to pay at least 75% of their distributable income as dividends.

Total assets of Vukile stood at R40.1bn at the end of March, with profit for the year rising by 25% to R1.9bn.


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