Decision follows Poland’s EPP announcing it will postpone payment of previously declared dividend.
Redefine’s previous distribution guidance withdrawn; to be revised to provide greater market certainty
Johannesburg, 23 March 2020 – Given the unprecedented and evolving market conditions brought about by the ongoing COVID-19 uncertainty, we have decided to take a number of precautionary steps to safeguard our business in the best interests of all our stakeholders.
While the safety of our tenants, visitors, shoppers and employees remains our paramount concern, the persistent and unprecedented COVID-19 uncertainty requires prudent decisions to be made which will provide us with enhanced flexibility and liquidity to remain on the front foot.
We cannot forget that the uncertainty and prolonged nature of the lockdown is having negative repercussions all over the world, and South Africa is no exception. Polish listed EPP, in which we hold a stake, has already announced it is to postpone the payment of its previously declared dividend.
While Redefine can comfortably meet its solvency and liquidity obligations and we are confidently pursuing our stated strategic priority to reduce balance sheet risk, the current circumstances dictate that we take the important precautionary measure to defer our decision on a dividend payment for the six months ended 29 February 2020. The board has decided to postpone this until the release of results for the year ending 31 August 2020, which is expected to be on or about 2 November 2020.
We have also announced to the market that we are withdrawing our previous distribution guidance that distributable income per share for the 2020 financial year was expected to be between 5% to 7% lower than 2019. We will provide you with updates at such time as we are able to do so with a reasonable degree of certainty.
Please be aware that we are in a closed period ahead of our upcoming results announcement for the half year to 29 February 2020 and therefore are not able to engage directly. However, any questions you may have can be channelled to our centralised investor relations email: firstname.lastname@example.org so that the same information is provided to all investors.
There is little doubt this is an extraordinary time of uncertainty and it necessitates that all businesses review their outlooks. We are not alone in this, but we are committed to transparency and providing our stakeholders with certainty. By acting prudently now to reduce balance sheet risk, bolster liquidity and create financial flexibility, we can get through this crisis together.