30th Mar 2020 09:37
(Alliance News) - Property investor Hammerson PLC on Monday said it will not recommend paying its final dividend and also withdrew its payout guidance.
Hammerson, which has retail units among its assets, said some tenants have been forced to close stores as national governments impose lockdown measures in a bid to contain the Covid-19 outbreak.
In the UK, where only stores providing essential services remain open, Hammerson said it has so far received 37% of rent billed for the second quarter.
Hammerson added: "Adjusted for rent deferred, switched to monthly payment, and a nominal proportion waived, we have received 57% of rent due. We anticipate both figures to increase as temporary agreements are implemented and further cash is collected."
Last week, peer Intu Properties PLC said it has only received 29% of rent due for the second quarter of 2020, compared to 77% received for the same period a year before.
Hammerson on Monday said Retail sites in Leeds and Leicester have been fully closed.
Similarly, in Ireland and France, only essential stores remain open; these units contribute roughly 8% and 3% of passing rent, respectively.
Hammerson said: "The board remains confident in the financial position of the business. It is clear, however, that Covid-19 will have a material impact on the group in 2020. As a result, and given the significant uncertainty about the duration of the pandemic, the board has adopted a prudent approach and decided that it is no longer appropriate to recommend the final dividend of 14.8 pence per share for the financial year ended December 31, 2019.
"The board is also retracting its dividend guidance for 2020, although it remains mindful of its real estate investment trust tax obligations."
Hammerson in February said it would pay a 14.0p dividend in 2020.
Shares in the company were down 16% at 72.20p each in London on Monday morning. In Johannesburg, they were trading 12% lower at ZAR16.07 apiece.
Intu was down 11% in London and 1.1% in Johannesburg.
By Eric Cunha; [email protected]
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