KSL to pay out at least 40% of net profit

PETALING JAYA: Property developer KSL Holdings Bhd has set a dividend policy of paying a minimum of 40% of annual core net profit from operations, excluding fair value gains, to shareholders with effect from the financial year ending Dec 31, 2015 (FY15).
KSL chairman Ku Hwa Seng said the dividend policy is aimed at enabling shareholders reap the returns in tandem with its expanding business.
"Our business is growing positively, buoyed by the stronger demand in our property development segment and the steady income from our investment properties, notably our integrated KSL City Mall and Hotel in the heart of Iskandar Malaysia. The dividend policy is not only to reward existing shareholders, but also to attract and establish a larger institutional investor base for the long term," he said in a statement yesterday.
The quantum and frequency of the dividends are subject to various factors, including the group's financial performance, cash flow requirements, availability of distributable reserves and tax credits, future operating conditions, as well as future expansion, capital expenditure and investment plans of the group.
For FY14, KSL achieved core net profit from operations of RM256.4 million, after netting off RM83.8 million from fair value gains.
In the fourth quarter ended Dec 31, 2014, the board proposed a final single tier dividend of 5 sen per share in respect of FY14. Together with the earlier-paid interim single tier dividend of 5 sen per share, the total dividend payout amounts to 10 sen per share. This represents an estimated dividend payout of RM93.1 million of the group's core net profit for FY14, equivalent to a payout ratio of 36.3%.
The dividend payout in FY14 translates to a dividend yield of 4.7% based on the share price of RM2.12 as at March 13, 2015.