17:00 Mon 15 Jun 2020
Real Estate Investrs - Update on Trading and Dividend
("REI" or the "Company" or the "Group")
Update on Trading and Dividend
Rent Collection & Lease Events
Our diverse and stable property portfolio has performed well, despite the extremely challenging market conditions and unhelpful government restrictions placed on commercial landlords. Rent collection for the March quarter so far is 81% and we remain in a dialogue with occupiers whose payments remain overdue many of whom are waiting for their businesses to re-open or are taking advantage of the 90-day government payment rule. However, we anticipate that we will agree the repayment of any outstanding arrears alongside their ongoing rental payments.
The last three months have been an active period with Covid-19 related negotiations on rent being agreed alongside lease extensions, which has resulted in 18 new lease events, leading to an improvement in our WAULT (Weighted Average Unexpired Lease Term) to 4.96 years to break and 6.63 years to expiry (
As at the date of this announcement, our portfolio consists of 58 assets and 277 occupiers, with
Dividend Policy & Payment
As a Real Estate Investment Trust (REIT), we are required to pay 90% of the Company's rental taxable profit in dividends to shareholders. REI currently pays in excess of the required level of dividend.
As stated in our recent trading update on
As such, REI will now pay a 0.5p per share Q1 dividend, with the expectation that this will also be the level of dividend for Q2 and Q3. As stated above, the Board retains the option to make a larger final quarter dividend payment following the year end. The Board has not taken this decision lightly, and looks forward to the resumption of sustainable dividend growth, as soon as it is prudent to do so.
The Board confirms that the Q1 dividend for 2020 of 0.5p per share, will be paid on
"The diversity of our portfolio combined with our close working relationships with our tenants and their advisers, together with managements' in-depth knowledge of the regional marketplace, continues to be the strength of our business model. That said, given the current market environment, it is appropriate that we act prudently and a logical precaution is to reduce dividend payments during the course of the year leaving the option to make a larger final payment, if the Company is able to continue to maintain its current resilience."
Enquiries:
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+44 (0)121 212 3446 |
Cenkos Securities |
+44 (0)20 7397 8900 |
Liberum |
+44 (0)20 3100 2000 |
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+44 (0)20 3328 5656 |
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+44 (0)20 3151 7008
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About
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