Kiwi Property Group Ltd has cancelled its final dividend for the year which ended on 31 March.
At the same price as the interim 3.525c/share, the payout would have cost the company $55.3 million.
Kiwi Property has also cut directors’ & executive pay by 20% and frozen salary increases.
In an update yesterday on the ongoing disruption caused by the Covid-19 pandemic, chief executive Clive Mackenzie & chair Mark Ford said: “During this time of unprecedented challenge, Kiwi Property is focused on ensuring the wellbeing of its people, tenants & customers, and protecting the long-term value of the company for investors.
“While Kiwi Property’s operating performance was in line with expectations prior to Covid-19, it is clear the pandemic will have a material impact on the company’s forward-looking performance & rental receipts. It is too early to quantify the impact of the ongoing period of disruption on future income, asset values & cashflows.”
The company refinanced $214 million with 3 banks on Monday and another $147 million with 2 banks on Friday, and now has nothing maturing until the March 2023 year. It has $303 million in undrawn credit & overall gearing of 29.2%.
On other cost-saving measures, Mr Mackenzie & Mr Ford said: “Kiwi Property has implemented a comprehensive cost savings programme to reduce expenses and help offset any decline in income resulting from measures to control the pandemic.
“Effective immediately, non-essential capital expenditure projects have been put on hold until there is greater clarity about the future trading environment. All operating expenditure has been reviewed and discretionary spend will be stopped where possible.”
27 March 2020: Kiwi Property extends $361 million of bank facilities
25 March 2020: Tenant rights could cost Kiwi Property $6 million
Attribution: Company release.