The Unite Group PLC Board have declared an interim dividend payment of 6.5p per share (2020: nil). The interim dividend will be fully paid as a Property Income Distribution (PID) of 6.5p. The interim dividend will be paid on 29 October 2021 to shareholders on the register at close of business on 17 September 2021.
They will distribute at least 65% of EPRA EPS, excluding the LSAV performance fee as dividends for 2021 to meet PID obligations under the REIT regime. They plan to increase they dividend payout ratio to 80% of EPRA EPS as market conditions stabilise. This level of payout enables the Company to retain capital to invest in growth opportunities, improvement of the operational portfolio and delivery of a sustainability strategy, including a 2030 target for net zero carbon.
For those shareholders electing to the Company's scrip scheme, this interim dividend will be paid in new ordinary shares. The last date for receipt of scrip elections for this interim dividend is 8 October 2021. Details of the scrip scheme, terms and conditions and the process for election to the scrip scheme are available at the Company's website.
Other financial highlights include:
EPRA earnings up 18% to £88.3 million (H1 2020: £74.8 million) and EPRA EPS up 8% to 22.2 pence (H1 2020: 20.5 pence)
EPRA profit includes £15.7 million (3.9 pence) from partial recognition of the LSAV performance fee
96% rent collection for the 2020/21 academic year
Guidance for EPRA EPS of 27-30 pence for FY2021 (2020: 25.5 pence), excluding the LSAV performance fee
Profit before tax of £130.4 million (H1 2020: £73.9 million loss), driven by EPRA earnings and a valuation gain of £54.3 million in the period (H1 2020: £135.2 million loss)
Total accounting return of 3.9% for H1 (H1 2020: (2.3)%)
