Hammerson proposes scrip dividend to keep REIT status

Hammerson has declared two separate dividends for its shareholders, to meet its obligations as a REIT and help retain cash. The landlord has proposed an interim dividend of 0.2p per share for the first six months of 2020 and an enhanced scrip alternative of 2p per share. As a REIT, Hammerson is obliged to pay 90% of its tax-exempt income to shareholders each year. If it fails to do this, it has to pay corporation tax on UK property income and capital gains. The landlord said that if it did not meet its property income distribution obligations by the deadline then it “could lose its REIT status”. Similarly, it has SIIC status in France. Hammerson added that the scrip dividend payout will retain cash for future operating and capital expenses during the Covid-19 pandemic. A shareholder meeting will be held on 4 December to approve the scrip alternative. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette Photo courtesy of FTI Consulting