REITs miss out in Pre-Budget report

The Pre-Budget report on 9 December disappointed REIT finance directors by failing to relax the requirement to pay cash dividends.

The British Property Federation had lobbied for scrip dividends (shares) to count towards the minimum 90% income distribution REITs are required to make.

Deloitte REIT expert Phil Nicklin said: “It’s disappointing that government hasn’t done anything further to enable REITs to conserve cash. This is particularly important in an economic environment where new debt is difficult and expensive to come by.”