JSE-listed real estate investment trusts (Reits) Redefine Properties, Hyprop Investments and EPP have announced postponements to the payment of dividends in response to the Covid-19 outbreak.
The uncertain and prolonged nature of lockdown-type measures is having negative repercussions all over the world, and South Africa is no exception.
“While Redefine can comfortably meet its solvency and liquidity obligations and we are confidently pursuing our stated strategic priority to reduce balance sheet risk, the current circumstances dictate that we take the important precautionary measure to defer our decision on a dividend payment for the six months ended February 29.
“The board has decided to postpone this until the release of [its] results for the year ending August 31, which is expected to be on or about November 2,” Redefine CEO Andrew Konig confirmed.
Additionally, Redefine has withdrawn its previous guidance that distributable income per share for the 2020 financial year would be between 5% and 7% lower than 2019.
The company will update stakeholders as soon as it is able do so with a reasonable degree of certainty.
Meanwhile, Hyprop has established Covid-19 task teams covering its South African, Eastern European and other sub-Saharan African operations. The teams are implementing relevant guidelines, protocols and preventive measures recommended by the World Health Organisation, local health authorities and governments.
Hyprop, in its results for the six months ended December 31, said a dividend of 308.7c apiece would be paid to shareholders. The company has delayed the payment of this interim dividend to on or about October 5.
The board of EPP, meanwhile, declared a cash dividend of €0.05 apiece for the six months ended December 31, the payment of which has been delayed to June 29.
EPP’s properties are located in Poland.
The companies assured shareholders they would continue to monitor the impact of Covid-19 on each of their operations, respectively, and communicate updates as events unfold.
The late dividend payments will strengthen each company’s ability to weather the difficult conditions that are expected for the next few months.