Dividend Update

RNS Number : 3660H

Capital & Regional plc

24 March 2020

 

24 March 2020

CAPITAL & REGIONAL PLC ("Capital & Regional" or "the Company" or "the Group")

UK company number 01399411

LSE share code: CAL 

ISIN: GB00BL6XZ716

LEI: 21380097W74N9OYF5Z25

DIVIDEND UPDATE

Within its Year End Results announcement on 5 March 2020 the Company proposed a final dividend for the year ending 30 December 2019 of 11 pence per share (the "Dividend").

The Company is maintaining the Dividend but, in light of the evolving impact of the COVID-19 pandemic, is proposing to initiate a scrip dividend alternative, subject to shareholder approval at the Company's Annual General Meeting scheduled for 20 May 2020.

The Company's Directors and its three largest shareholders, Growthpoint Properties Limited, Mstead Limited and PDI Investment Holdings Limited, who together represent approximately 60.6% of the Company's Issued Share Capital, have all confirmed that they will take up the scrip option for the entirety of their holdings.  In addition, a further three of the Company's largest shareholders have also indicated that they will take up the scrip option, which would increase the total take-up to at least 65%. 

The Board believe this approach to be the most beneficial course of action to take in the current circumstances, noting that it:

· Results in the majority of the proposed £11.4 million total dividend payment being preserved in cash within the business;

· Demonstrates the support of the Company's largest shareholders;

· Maintains compliance with the Company's REIT requirements; and

· Provides other shareholders with flexibility to take cash or the scrip alternative.

While we are continuously monitoring the ongoing situation and taking action in line with the latest government advice, at this time it is too early to accurately quantify the impact of COVID-19 on the Company's operations. We would note that in light of the updated government guidance of last night, a number of our customers will likely remain open in order to provide essential goods and services such as food and pharmaceutical supplies to the communities they serve.  A significant part of the Company's focus for the immediate future is therefore on maintaining liquidity and trading through to more normalised conditions.  The Company will provide a further update to the market in due course.

Implementing the scrip dividend alternative, which is subject to standard regulatory approvals, necessitates changes to the dividend timetable from the dates previously announced.  The revised timeline is summarised below although remains subject to possible change if government restrictions preclude the ability to proceed with the Annual General Meeting as scheduled.

	2020
Annual General Meeting	Wednesday, 20 May
Confirmation of ZAR equivalent dividend and PID percentage	Thursday, 21 May
Last day to trade (SA shareholders)	Tuesday, 2 June
Shares trade ex-dividend on the JSE	Wednesday, 3 June
Shares trade ex-dividend on the LSE	Thursday, 4 June
Record date on the LSE and the JSE	Friday, 5 June
Dispatch of share certificates, payment of cash dividend and cash entitlement, CSDP/broker accounts credited	Thursday, 24 June

Notes:

1.  JSE shareholders electing to receive a cash dividend will have this paid in South African Rand, based on the conversion rate to be calculated prior to Thursday, 21 May 2020.

2.  The deadline for submission of valid election forms will be Friday, 5 June 2020.

3.  Share certificates (in respect of shares held on the South African register) may not be demateriliased or rematerialised between Wednesday, 3 June 2020 and Friday, 5 June 2020, both days inclusive.

4.  Transfers of shares between sub-registers in the United Kingdom and South Africa may not take place between Thursday, 21 May 2020 and Friday 5 June 2020, both days inclusive.

5.  South African shareholders are advised that the final dividend will be regarded as a foreign dividend. Further details relating to Withholding Tax for shareholders on the South African register will be provided within the announcement detailing the currency conversion rate on Thursday, 21 May 2020.

- ENDS -

For further information:

Capital & Regional plc  020 7932 8000

Lawrence Hutchings

Stuart Wetherly

About Capital & Regional plc

Capital & Regional is a UK focused specialist property REIT with a strong track record of delivering significant value enhancing retail and leisure asset management opportunities across its portfolio of in-town, dominant community shopping centres.

Capital & Regional owns seven shopping centres in Blackburn, Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood Green.  Capital & Regional manages these assets through its in-house expert property and asset management platform.

For further information see   www.capreg.com .

 

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