TOUGH ENVIRONMENT
Frugal dividends for property funds
The company opts to hold back some cash for future acquisitions
Redefine International is unlikely to be the only listed real-estate group to pay smaller dividends relative to previous years in the current results season. The company chose to hold back some cash for future acquisitions, taking a conservative stance in a risky and competitive environment. Last week, the UK-based, western Europe-focused company declared a dividend of 1.3p a share for the half-year to February, down 20% from 1.625p for the six months to February a year before. "I don’t think we will be the only property fund to put measures in place to be cautious in the current market," said CE Mike Watters. "We are currently seeing certainty return to the UK market as the Brexit process is rolled out." Redefine International is purposefully paying out less of its income as dividends to serve its European investors. "Overall, we see dividend growth moderating over the coming year. However, it still remains ahead of inflation and a dependable component of return for the asset class...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.