Vukile Property Fund has pushed back the declaration of its final-year dividend by about a month amid discussions with the JSE on possible payment exemptions.
The group was expected to declare a dividend of about 48.186c for its year to end-March on August 31, but there are discussions with the JSE regarding possible exemptions for minimum payments by real-estate investment trusts (Reits).
Reits are required to pay out a minimum of 75% of distributable earnings, with Vukile saying on Friday discussions with the JSE so far have been “constructive”.
Until two years ago, listed property was the best-performing asset class in SA. Income was considered to be rock solid. At their best, property shares combine the income characteristics of bonds with the growth aspects of equities.
“To avoid any prejudice to Vukile that may result if a sector-wide ruling were to be secured after Vukile’s previously expected dividend declaration date of August 31, the JSE has allowed Vukile to defer the declaration of its final dividend until no later than September 29,” the statement read.
In late June, CEO Laurence Rapp said Vukile’s Spanish assets had delivered an exceptional performance and its SA assets had delivered a strong performance in the year to March.
At the close of trade on Friday, Vukile’s share was up 0.76% to R5.30, having fallen more than 72% so far in 2020. It reached a record high of R23 in April 2018. The bulk of the losses since can be attributed to the effects of the coronavirus-enforced lockdowns.
Correction: August 31 2020
An earlier version of this article said Vukile had a R1.5bn stake in a UK fund, when it had sold its stake in Atlantic Leaf Properties earlier in August
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