UK Commercial Property REIT has reduced its quarterly dividend by 50% to strengthen its balance sheet during the coronavirus disruption.
The payout, due next month, will now be 0.46p per share. The company has yet to announce when it will make the payment.
The REIT said: “The board is cognisant of the importance of dividends to its shareholders, both large and small, who are reliant on this income, particularly in these difficult times when the Covid-19 crisis has forced many companies across the board to cancel their distributions.
“The board will, however, continue to monitor closely the evolution of Covid-19, together with its impact on the economy, rent receipts and recurring earnings, while balancing the income requirements of its shareholders, and keep its future dividend policy under review.
“In particular, the board will have clear visibility of 2020 earnings at the time of the Q4 distribution and therefore this will provide the opportunity to review the total dividend distribution for 2020 and future dividend policy.”
The REIT said it had received 68% of its rent payments due for Q2. Of this, it collected 59% of retail rents, 78% of office rents, and 82% of industrial rents.
It also said the board of directors would take a 20% pay cut for the remainder of 2020.
The REIT’s portfolio valuation as of 31 March 2020 was £1.29m, down by 3.1% from £1.38bn at 31 December 2019, in line with RICS guidance on the “material valuation uncertainty” during coronavirus.
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