BMO Real Estate cuts interim dividend in half

(Sharecast News) - BMO Real Estate Investments updated the market on its interim dividend on Wednesday, reporting that the Covid-19 coronavirus pandemic was having, and was expected to continue to have, a "significant impact" on its rental receipts.
The London-listed firm said that at present, rent collection for the quarter was at 86.6%, compared to 99.7% for the same period last year, which it said was "commendable" in the current environment.

Notwithstanding that collection level, the board said it was conscious that the group had been paying a dividend which had not been fully covered over the course of the financial year, and that expectations for the third quarter rent collection from late June would be "even more challenging".

"The board therefore considers it prudent to reduce the level of its future quarterly dividend payments in order to protect cash reserves and the long-term value of the group," the board said in its statement.

"The board will continue to monitor closely the impact of Covid-19 on rental receipts and earnings and keep the future level of dividends under review."

It announced a third quarterly interim dividend for the year ending 30 June at the reduced rate on Wednesday, 0.625p per share - a 50% reduction on previous quarterly interim dividends.

That dividend would be a property income distribution, it confirmed.

At 1202 BST, shares in BMO Real Estate Investments were up 3.05% at 60.8p.