Ediston Real Estate manager of the £340 million asset Ediston REIT announced that the company has increased its dividend by 4.5% to take effect from January 2018. The monthly paid dividend will increase from 5.50 pence per share to 5.75 pence. On a share price of 112 pence per share this produces a dividend of 5.1% which is an attractive level of income in a market where such income returns are in demand. Eiston REIT launched in October 2014 and has delivered consistent dividend returns since launch as well as around 15% NAV growth during the same period. It also retains a healthy dividend cover which is something it suggests most property companies should have.
Calum Bruce, Director of Investment at Ediston said: “The decision to increase the dividend was made as a result of the improvement in dividend cover. We remain committed to paying a monthly dividend which is progressive and sustainable in its cover over time. At the same time we remain busy implementing our very focussed asset management strategies across the portfolio of property assets we own in the hope of improving income, lease lengths, dividend cover and capital values.
