“The board has resolved to offer shareholders the election to receive a return of capital by way of an issue of 2.742 new NEPI shares for every 100 NEPI shares held at an issue price of EUR5.05 per share or a cash dividend of EUR0.1386 per share,” NEPI said in a statement.
It said a cash dividend will be paid to shareholders unless they elect to receive a return of capital.
The dividend offered is 7.2% higher than the EUR0.1293 a share dividend paid out for the first six months of 2013. At the time, most of the shareholders opted to receive a return of capital.
The cash dividend will be paid out of the company’s distributable profits, while any new NEPI shares to be issued pursuant to the return of capital will be funded by way of a reduction of capital, the South African fund said.
NEPI reported a profit attributable to shareholders of EUR57.4 million in 2013, up 73% on the year.
NEPI was the first property fund listed on the Bucharest Stock Exchange, on a dedicated segment for real estate investment trusts (REITs). The fund is also listed in Johannesburg and London.
At around 10:00 am Tuesday, NEPI’s shares traded down 7.04% at 25.1 lei (EUR5.55) in Bucharest. (EUR1=RON4.5169)