ESR Group has approved its dividend policy with effect from July 13.
Under the policy, the group has proposed to begin paying a dividend in each financial year to the company’s shareholders.
The amount of any dividend payment will be subject to factors including the company maintaining an “optimal capital structure” to ensure that adequate capital resources are available for business growth and investment opportunities.
The amount will also be dependent on the group’s actual and expected financial performance, the availability of dividends received by the group from its subsidiaries, as well as the group’s cash flow and liquidity position and prevailing economic and market conditions.
According to the statement released by ESR Group, the board intends to commence paying an interim dividend for the financial year ending Dec 31 in August when the interim results of the company for the 1HFY2022 ended June 30 are approved.
The dividend policy will be reviewed by the board from time to time and there is no assurance that dividends will be proposed or declared in any particular amount for any given period.
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“The announcement of the company’s dividend policy is a major milestone and further validates the overall strength and sustainability of our business. The board firmly believes that we can continue investing in ESR’s growth given the strong secular trends underpinning its business while also delivering on its objective to generate returns to shareholders that are sustainable and in line with the long-term growth of the company,” says Jeffrey Perlman, chairman of ESR group.
“These strong fundamental drivers, combined with the recent acquisition and integration of ARA, the active capital recycling and a further reinforced and robust balance sheet, have supported the Group to not only reach its current scale and earnings resilience, but it positions the group well for future growth and to deliver long-term value to its stakeholders,” he adds.
