The Group will propose to the AGM a cash distribution of €2.50/share to be paid on May 16, 2024.
This proposal is based on 2023 achievements, the improved visibility of the Group’s operating performance, the delivery of its main committed projects in 2024, the limited forecasted Capex beyond 2024, its credit metrics and its liquidity position.
S&P and Moody’s confirmed the proposed cash distribution would have no impact on the current rating of the Company.
Going forward, the Group intends to significantly increase the distribution based on operating performance, deleveraging progress and valuations evolution. The Group remains fully committed to continue deleveraging through disposals, including the radical reduction of its financial exposure in the US, and disciplined capital allocation.
The Group wishes to thank its shareholders for their support over the past three years and express its confidence in the future.
Accounting and tax considerations
As at December 31, 2023, the total statutory retained losses of URW SE (parent company) is negative at -€2,927 Mn,
including a loss of -€585 Mn in 2023.
Given the negative statutory results of URW SE, the Group has no obligation to pay a dividend in 2024 for the fiscal year 2023 under the SIIC regime and other REIT regimes it benefits from. The dividend distribution obligation resulting from the French SIIC regime will be delayed until URW has sufficient statutory results to meet this obligation.
As a consequence, the distribution will be made out of premium, which amounted to €13.5 Bn in URW’s statutory accounts as at December 31, 2023. This premium distribution will not reduce the carry forward SIIC dividend payment obligation standing at €2,001 Mn as at December 31, 2023 and will qualify as an equity repayment for French tax purposes (article 112-1 of the French tax code).