EPP cancels €53m dividend payment as Covid-19 threat persists
Trading conditions in Poland have improved, but effect of pandemic is uncertain, company says
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.