Merlin shareholders take a hit

Merlin Properties, one of the largest real estate funds on the Iberian peninsula, is to scale down the amount of dividends it will pay out to shareholders because of the Covid-19 crisis.

At the same time it is warning that its own management will have to take a hit on their bonuses.

According to a communiqué sent out to the Portuguese stock market regulator CMVM, the board has decided to review its dividend payout policy to shareholders based on the 2019 accounts.

Part if the dividend of €0.14585 per share will remain, based on the results achieved last year, but it is preparing to cancel another chunk of dividends of €0.17415 that came from reserves.

The Spanish REIT, that’s been listed on the Lisbon stock market since the start of this year, has already distributed a dividend of 20 cents per share for last year based on the 2019 results.

It was preparing to pay out a further 32 cents, meaning a total of 52 cents per share, but part of this chunk of 32 cents is at question because of the effects of the virus.
At the same time that shareholders are being warned that they may have to take a haircut on their dividends, Merlin managers too are being told to expect a 25% shave on their payouts.

The REIT reveals that the amount of payment for all directors will be reduced by 25% and that “no long term incentive bonus plans would be implanted in 2020.”