JUGGLING INVESTOR DEMANDS
Redefine to move to lower European dividend metric
Redefine International is set to pay out a lower proportion of its income as dividends as it caters for the demands of its UK shareholders. The company has to juggle the different demands of its South African and international investors, with JSE investors seeking income growth and investors on the London Stock Exchange wanting net asset value appreciation. It believes moving to a European Public Real Estate Association (Epra) distribution metric is a method of doing so. "We want to be more fiscally conservative in a low-growth UK environment," said deputy CE Stephen Oakenfull. "The company will be moving to an industry standard Epra-based earnings metric. Adopting this earnings measure, adjusted only for necessary company-specific adjustments, allows for a closer alignment between earnings and operating cash flow. "To facilitate our leverage objectives and to provide greater financial flexibility, a medium-term dividend payout ratio within the range of 90% to 95% of our rebased ear...
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