Yew Grove lowers interim dividend after acquisition
Yew Grove Reit (CDI)
€1.00
14:39 08/02/22
Real estate investment trust Yew Grove warned investors on Thursday that its interim dividend would be "marginally lower" than anticipated, despite seeing its annualised passing rent hit €6.3m thanks to its acquisition of three office properties in Letterkenny, County Donegal
The Ireland-focussed investor laid out a total of €16m for the properties, representing a net initial yield of 8.35% after accounting for all purchase costs.
Yew Grove's new buildings, which are tenanted by Optum Operations under a 10-year lease with nine years of certain term remaining, are made up of 90,548 square feet of net internal space completed to Grade A specification, having undergone a major refurbishment in 2017.
In trading news, the AIM-listed outfit warned that its dividend would likely be "marginally lower" than the €0.01-0.02 figure previously declared, dependent on the timing of further acquisitions prior to year-end
However, Yew Grove said it was "confident" that it would be able to meet its dividend guidance of €0.07 per share for the 2019 financial year.
Chief executive Jonathan Laredo said: "The high-quality rental income stream positions us to pay a maiden dividend for 2018 and retain guidance for a significant dividend increase in 2019. We look forward to 2019 and the continued delivery against our stated objectives."
As of 0840 GMT, Yew Grove's London-listed shares had ticked ahead 0.24% to €1.01 each.