The execution policy is determined by the Intervest board of directors and presented for approval to the general meeting of shareholders following the end of each financial year.
Intervest is a regulated real estate company with a legal distribution obligation of at least 80% of the EPRA earnings, adjusted to non-cash flow elements. The gross dividend will always amount to a minimum of 80% of this sum, meaning that the RREC will always fulfil its legal obligations.
As part of its growth strategy, Intervest decided in March 2016 to provide a gross dividend for the 2016, 2017 and 2018 financial years of at least € 1,40 per share. This amounts to an average pay-out ratio of between 80% and 90% of the EPRA earnings result for the combined 3 years.
Intervest is planning a 3% growth in EPRA earnings per share for the 2019 financial year. From a strategic point of view, Intervest wants to keep sufficient liquid assets from the operational activities available in the company to develop the Greenhouse concept and other innovations and renovations in its buildings. It is for this reason that Intervest decided to plan a gross dividend of a minimum € 1,50 (subject to approval by the annual general meeting in 2020) per share. This means a gross dividend yield of 7,3% based on the closing rate of the share as at 31 December 2018, which amounted to € 20,60 and gives an average pay-out ratio of approximately 90% of the expected EPRA earnings.