Capitalisation option allows for retention of cash to strengthen the Company’s financial position
BSE listed diversified property group PrimeTime today issued a circular unpacking the elective capitalisation option on its second interim distribution for 2022 of 4.95 thebe per linked unit payable to unitholders.
In terms of the elective capitalisation option, linked unitholders can elect to reinvest their distribution in return for linked units in PrimeTime at a ratio of the net distribution amount after withholding tax, divided by P1.85.
“The elective capitalisation option provides shareholders with a unique opportunity to acquire additional shares in PrimeTime without having to pay the costs usually associated with such transactions,” explained Sandy Kelly, Director of PrimeTime.
“Importantly, the retained cash will allow PrimeTime to build out its portfolio without negatively impacting on its loan-to-value,” he said.
Loan-to-value is an important metric measuring the amount of debt in a company vs its value.
The Board of Directors of PrimeTime has approved the issue of up to 6 546 059 new units to be funded by the capitalisation of up to 100% of the imminent cash distributions to unitholders.
“We have successfully traded through the last two years, and now, with the dissipation of the Covid pandemic, we are turning our focus to maintaining our excellent record of tenant retention. We have already seen a reduction in vacancies across the portfolio, and we are experiencing faster turn-around times in filling voids as they arise,” remarked Kelly.