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Commercial Property News
Unexpected 5p extra dividend for Great Portland investors declared
Great Portland Estates Plc, the central London landlord-developer, today said it is giving a second interim dividend of 5 pence a share after gaining returns from acquisitions funded by a rights issue in May last year.
The extra dividend--rarely seen among listed U.K. companies--brings the fiscal full-year dividend to 8 pence a share, or a total payout of £25 million, up from £21.7 million in the previous year.
At the time of the rights issue in May, the company said that the total payout for the year to March 2010 would be at least £21.7 million, with the potential for an enhanced payment depending on returns generated from the use of its proceeds.
Since then, 97% of the capital raised was used in new acquisitions, "some of which provide attractive income yields, while the remainder are expected to produce good profits over the next few years," the company said.
Of the 5 pence being given as second interim dividend, 2 pence will be a REIT property income distribution, as the company converted to a REIT on Jan 1st 2007.
In January, Great Portland posted an 8.7% increase in the value of its portfolio, to £1.198 billion, due to a rebound in real-estate valuations and acquisitions, showing that the property market in the district where its activities are concentrated is heating up.
Great Portland shares have risen 78% over the past year. The stock closed up 2.5% at 290 pence Tuesday.
The extra dividend--rarely seen among listed U.K. companies--brings the fiscal full-year dividend to 8 pence a share, or a total payout of £25 million, up from £21.7 million in the previous year.
At the time of the rights issue in May, the company said that the total payout for the year to March 2010 would be at least £21.7 million, with the potential for an enhanced payment depending on returns generated from the use of its proceeds.
Since then, 97% of the capital raised was used in new acquisitions, "some of which provide attractive income yields, while the remainder are expected to produce good profits over the next few years," the company said.
Of the 5 pence being given as second interim dividend, 2 pence will be a REIT property income distribution, as the company converted to a REIT on Jan 1st 2007.
In January, Great Portland posted an 8.7% increase in the value of its portfolio, to £1.198 billion, due to a rebound in real-estate valuations and acquisitions, showing that the property market in the district where its activities are concentrated is heating up.
Great Portland shares have risen 78% over the past year. The stock closed up 2.5% at 290 pence Tuesday.
Wed, 3rd Mar 2010