Metrovacesa has confirmed that it is suspending, until the second half of the year, the decision on the payment of this year’s dividend charged to the results of the past year. A measure that has justified “for prudence and in order to preserve the treasury” in the face of the “uncertainty” generated by the crisis.
This has been confirmed by the president of the real estate developer, Ignacio Moreno, and his CEO, Jorge Pérez de Leza, during his speech at the general meeting of shareholders, from whose agenda the item regarding profit distribution had been excluded. Neither of them has hinted at what the final decision might be.
A year ago, in May 2019, Metrovacesa paid what was its first dividend after trading again after the previous crisis, to which it allocated some 50 million euros. A remuneration that came a year earlier than expected in the company’s roadmap, which established its first payment for this year.
“At the time when there is more clarity regarding the economic outlook commitment to shareholders will be resumed to remunerate them with the cash generated by the company, “said the president of the real estate company about future new dividends.
Likewise, the real estate company also removed from the agenda of its meeting the point regarding the approval of a long-term incentive plan (‘bonus’) for the CEO and its executive leadership. In this case, the articulation of the plan is postponed due to the impossibility that the crisis supposes to fix the objectives of the company to which to link the plan.
Waiting for the de-escalation
During the meeting, held electronically, the company in which Santander and BBVA participated, transmitted to its partners the “strength” with which it claims to face the current situation.
Thus, Pérez de Leza explained that Metrovacesa account at the end of 2019 with a cash position of 139 million euros, a net indebtedness of 78 million, equivalent to 3% of the value of its assets (‘loan to value’), and also does not have relevant maturities for this year.
However, the company’s cash position had increased to May to 292 million, thanks to the resources generated by its activity and the financing of 30 million that the firm raised last April.
“As the economy recovers its pulse, supply and demand will rebound“Pérez de Leza said about the residential real estate sector, a sector that he considers to be” more robust, more professionalized and less dependent on bank financing than the one existing before the previous crisis. “