The Galeria Tecza shopping centre in Kalisz, Poland, is one of EPP’s retail properties in the Central European country. Picture: SUPPLIED
The Galeria Tecza shopping centre in Kalisz, Poland, is one of EPP’s retail properties in the Central European country. Picture: SUPPLIED

Poland’s largest retail landlord, EPP, has cancelled its payment of €53m (R1bn) in dividends for its year to end-December due to uncertainty over Covid-19.

The group had previously deferred the dividend payment until end-June, but said on Monday its outlook remains highly uncertain.

Though the Polish government lifted the trading restrictions on Polish shopping centres and retail outlets on May 4 and 71% of EPP’s retail gross lettable area is once again operating, “it remains premature to meaningfully establish the medium-term impact of Covid-19 on EPP’s retail portfolio and consequent cash flows”.

EPP, formerly known as Echo Polska Properties, reported that distributable income per share grew 0.2% to 11.62 euro cent during its year to end-December, in line with its guidance.

Net property income rose 3.8% to €148.1m in the period.

The JSE and Luxembourg-listed EPP is the largest owner of retail real estate assets in Poland, with its portfolio of 32 properties having a total leasable area of more than 1-million square metres.

gernetzkyk@businesslive.co.za