(Alliance News) - Real estate investment trust Hammerson PLC on Wednesday declared the payment of two separate dividends to shareholders.
The first payout is of an ordinary dividend of 0.2 pence per share for the first six months of 2020, and the second is of an enhanced scrip dividend alternative of 2.0p.
Hammerson said the scrip dividend payout will help the company meet its REIT property income distribution obligations. Should it not do this by the deadline, Hammerson would lose its REIT status, making it liable to pay corporation tax on UK property income and capital gains.
In addition, as a French Societe d'Investissement Immobilier Cotee, Hammerson is bound by the same obligation to distribute exempt property income, otherwise it would be liable to pay corporation tax in France.
Hammerson's board has recommended that shareholders elect to receive the enhanced scrip dividend alternative, as each director intends to do so.
However, the scrip dividend payout is conditional on shareholder approval, and will be proposed at a general meeting on December 4.
Shares in Hammerson were down 1.0% at 21.54 pence on Wednesday in London, while its Johannesburg shares were 2.2% lower at ZAR4.45.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Hammerson (HMSO)