Property Reit Hyprop Investments said yesterday its dividend per share for the year to June 30 was expected to be at least 15 percent, or 111.7 cents, per share less than the previous year. 
Picture: James White
Property Reit Hyprop Investments said yesterday its dividend per share for the year to June 30 was expected to be at least 15 percent, or 111.7 cents, per share less than the previous year. Picture: James White

Hyprop expecting a 15% drop in share dividend

By Edward West Time of article published Jul 17, 2020

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CAPE TOWN - Property Reit Hyprop Investments said yesterday its dividend per share for the year to June 30 was expected to be at least 15 percent, or 111.7 cents, per share less than the previous year. 

Hyprop, which owns shopping centres such as Rosebank Mall, Hyde Park Corner and Canal Walk in Cape Town, had in 2019 forecast a 10-13 percent decline in distributable income per share in 2020, while in December the company said it intended distributing 92 percent of distributable income. 

The company also later withdrew its dividend guidance for the year ending June due to the Covid-19 crisis, and said it would delay its R790 million interim dividend payment until October, to strengthen its balance sheet in the uncertain environment. 

The latest forecast for dividend per share was as a result of the expected 10-13 percent reduction in distributable income per share, the reduced dividend pay-out ratio and the impact of Covid-19. 

The annual results were expected to be published in the last week of September, a statement said. 

Last month the company reported that rent collections was increasing as outlets reopened and customers slowly start returning after more than two-months of lockdown.

Non-food brick-and-mortar retailers are among the worst hit by a government order to close all stores in a bid to prevent the spread of the coronavirus. 

Retailers were allowed to resume operations from May 1 but footfall is still significant down.

“Rent collections are improving as these negotiations are concluded with individual tenants and should return to normal levels once all are finalised,” Hyprop said in a statement.

BUSINESS REPORT ONLINE 

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