Dividend

Dividend policy

We use earnings to finance value-add acquisitions and development projects and to enhance our income-generating portfolio, thus increasing cash flow generation. Ensuing such a growth, the Management Board will recommend to its shareholders to distribute funds excess to the operating needs and investment opportunities.

The recommendation will depend, among others, on the following factors: the amount of the net profit set forth in the Company’s stand-alone financial statements, the current cost and availability of debt financing, the Company’s capital expenditure requirements and planned acquisitions and the share of external financing in the Company’s overall equity.

The Company’s dividend policy will be periodically reviewed by the Management Board, and decisions on the distribution of dividends will be made by the General Meeting.

Dividend history^*

^*Dates and amounts refers to shares listed on the Warsaw Stock Exchange

2020 and 2021

The Management Board recommendation (to deviate from dividend policy published on 20 March 2017) is based on the uncertainty regarding consequences of the outbreak of the coronavirus (COVID-19) pandemic and the dampened economic and operating environment of the Company associated therewith, as well as the implementation of various contingency measures resulting therefrom in the territories in which the Company’s group conducts its operations, which may have an adverse effect on consumer behaviour and retail sales, and thus, on the business operations of the Company. This recommendation is issued despite the positive financial results achieved by the Company and the healthy financial and liquidity positions.

The Management Board believes that it is in the interest of the Company and its shareholders to retain cash at the Company, which will allow the Company to maintain a strong capital and cash position to allow prevent any potential Covid-19 impact as well as allow for future growth through acquisitions and development.

The recommendation of the Management Board was apreoved by the Supervisory Board of the Company and the Ordinary General Meeting of the Company.