In light of uncertain trading conditions and the difficulty in determining the impact of Covid-19, JSE-listed real estate investment trust EPP has decided to revoke its dividend declaration for the six months ended December 31, 2019.
The Poland-focused developer initially delayed the payment of its interim dividend of 5.82c apiece, but has decided to rather preserve the €53-million distribution to ensure that EPP remains well capitalised during the uncertain period.
The company is continuously assessing the Covid-19 impact on its operations and liquidity, but cannot yet meaningfully establish the medium-term impact of the virus on the company’s retail portfolio and consequent cash flows.
This is despite the Polish government lifting trading restrictions in the country on May 4 and allowing 71% of EPP’s retail gross leasable area to operate.
The company intends to update shareholders in more detail by the end of June.