As a Belgian REIT, Befimmo has the obligation to distribute a dividend at a minimum of 80% of the “results”.
Dividend of the 2019 fiscal year
Distribution of the interim dividend: 24% reinvested in new shares
In November 2019, Befimmo SA has decided1 to offer its shareholders the choice of paying the interim dividend of €1.813 net per share (corresponding to €2.59 gross per share) in cash or in new shares, or a combination of both.
A proportion of 24% of the interim dividend for the financial year 2019 was distributed in the form of new shares (i.e. 206,929 new shares) at a price of € 54.39 per share, leading to an increase in the Company's shareholders' equity of € 11.3 million.
Final dividend of the 2019 fiscal year
The agenda of the Ordinary General Meeting of shareholders to be held on 28 April 2020, at which the accounts for the 2019 fiscal year are to be approved, will include a proposal for the distribution of a final dividend of €0.86 gross per share.
This final dividend will supplement the interim dividend, bringing the total dividend for the fiscal year to €3.45 gross per share.
EPRA earnings and dividend forecast for the 2020 fiscal year
Based on the assumptions2 for the preparation of the outlook published in February 2020, EPRA earnings (consolidated, group share) are estimated at €2.88 per share for 2020. Compared to the forecast published in February 2019 (€3.13 per share), the difference is mainly explained by the sale of the Pavilion3 building and the private placement carried out in December 2019 for accretive external growth.
At constant perimeter, Befimmo foresees a gross dividend of €3.454 per share for the 2020 fiscal year. It may again be paid via an interim dividend of €2.59 gross per share in December 2020 and a final dividend of €0.86 gross per share in May 2021.
At constant perimeter, the dividend level will therefore temporarily exceed EPRA earnings, but this situation should end by 2024. The dividend in subsequent years will depend on the economic climate, the investment opportunities that the Company takes, and its degree of success in implementing projects as well as in the development of the coworking activity, while continuing to benefit from a stable income, thanks to the defensive nature of its property assets.
Befimmo will also continue to rotate its portfolio in order to crystallise its value and keep its portfolio at the highest level of quality, as defined in its strategic framework. The capital gains realised will contribute to the amount available for distribution which should exceed or at least match the dividend forecast.
The Company’s financial service is provided by ING Belgium.
1 Please consult the press release of 20 November 2019, published on Befimmo's website.
2 For more information, please see pages 25 to 30 of the Annual Financial Report 2019.
3 For more information, please consult the press release of 29 April 2019, published on Befimmo's website.
4 Subject to a decision of Ordinary General Meeting
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