HGPC Hend. Global

 

TIDMHGPC 
 
RNS Number : 7526W 
Henderson Global Property Companies 
03 August 2009 
 

Page 1 of 2 
 
 
3 August 2009 
 
 
HENDERSON GLOBAL PROPERTY COMPANIES LIMITED 
(THE "COMPANY") 
CHANGES TO DIVIDEND POLICY AND BENCHMARK 
Introduction 
The Board announces changes to the Company's dividend policy, modifying the 
target dividend for the year beginning 1 September 2009 to 3.2p*, down from 
4.75p. The Board believes that the current level of dividend is now being 
achieved at the expense of some capital performance and that the change in 
dividend policy should ensure that shareholders receive an appropriate total 
return in future. 
The Board has also decided to change the Company's benchmark from an absolute 
return target of 8% per annum to the FTSE EPRA/NAREIT Developed Net Total Return 
Index (in sterling).  This is the principal global property securities index. 
Change to Dividend Policy 
In the three years since the Company was launched, there have been unprecedented 
levels of financial volatility and price falls in both global property and 
global equity funds.  This has meant that the Company's target of achieving an 
absolute return of at least 8% per annum has not been achieved.  Notwithstanding 
these extraordinary circumstances, in each year the Board has been able to pay 
the dividend of 4.75p per annum indicated in the Company's launch prospectus. 
The Board expects to do the same in respect of the current financial year to 31 
August 2009*. 
It is increasingly clear to the Board that the current level of dividend is now 
being achieved at the expense of some capital performance.  The Company's 
investment manager has had to concentrate on higher-yielding securities to the 
partial exclusion of others offering more growth potential.  This sacrifice for 
the sake of yield may be relatively insignificant in weak markets such as have 
been experienced in the last two years.  However, it will be increasingly 
noticeable as markets recover, the scope for capital appreciation re-emerges, 
and higher-yielding stocks take a back seat.  There is also some risk, with 
financial reconstruction continuing in many property markets, that some 
dividends might not be earned as the Company anticipates. 
Having consulted with the Company's largest shareholders, together representing 
about 65% of the Company's equity, the Board found that there was broad support 
for this view.  Accordingly, to ensure that shareholders receive an appropriate 
total return in future, the Board believes that the Company's dividend policy 
should be adjusted for the coming financial year from 1 September 2009 to 31 
August 2010. 
A better balance between current income and scope for capital appreciation is 
likely to be achieved by bringing the Company's target total return into line 
with the FTSE EPRA/NAREIT Developed Net Total Return Index (in sterling).  This 
is the principal global property securities index.  The Board proposes therefore 
to restrict the Company's target dividend from the beginning of the next 
financial year to 3.2p*, down from 4.75p.  In the absence of unforeseen 
circumstances, this will be paid in four equal interim dividends of 0.80p each*, 
commencing with the first interim dividend payable in January 2010. 
At the current share price of 39.25p (30 July 2009) the dividend yield will 
still be 8.1% per annum.  This maintains the Board's policy of offering a 
higher-than-market income return to shareholders and it frees the Company's 
investment manager to focus on positioning the Company's portfolio to benefit 
from any systemic upturn in global property markets and deliver an attractive 
total return. 
Change to Benchmark 
To reflect this change in yield objective and the determination of the Board to 
focus exclusively on pure global property equity investments, the Board has 
decided to change the benchmark from an absolute return target of 8% per annum 
to the FTSE EPRA/NAREIT Developed Net Total Return Index (in sterling).  This 
new benchmark will not apply immediately to the calculation of potential 
performance fees as the Board has agreed with the Company's investment manager 
that no changes to these arrangements will be discussed until the net asset 
value on the ordinary shares has recovered to close to the original issue price. 
The 8% per annum absolute return target therefore remains in place for these 
arrangements. 
Page 2 of 2 
 
 
Continuation Vote 
In his annual statement last autumn the Chairman explained how disappointed the 
Board was with recent performance.  Although much of this was due to the global 
surroundings the Board was conscious that the expectations set out in the 
Company's launch prospectus were not being met.  Accordingly, the Board thought 
it appropriate to give shareholders the opportunity to vote on whether they 
wanted the Company to continue after this year's AGM in December. Such a vote 
will be held if the average level of the discount to net asset value (calculated 
on a daily basis) over the period 1 September to 31 October 2009 is 10% or 
higher.  The Board remains committed to this proposal. 
Circular to Shareholders 
Copies of a circular to the Company's shareholders, which contains further 
information regarding the changes referred to above, dated 3 August 2009 have 
been submitted to the UK Listing Authority and will shortly be available for 
inspection at the UK Listing Authority's Document Viewing Facility, which is 
situated at: 
 
Financial Services Authority 
25 The North Colonnade 
Canary Wharf 
London 
E14 5HS 
Tel: 020 7066 1000 
Enquiries 
+--------------+------------+-----------+ 
| Christopher  | Chairman,  | T: 020    | 
| Jonas        | Henderson  | 7818 4458 | 
|              | Global     |           | 
|              | Property   |           | 
|              | Companies  |           | 
|              | Limited    |           | 
+--------------+------------+-----------+ 
| James        | Director   | T: 020    | 
| de           | and Head   | 7818 3349 | 
| Sausmarez    | of         |           | 
|              | Investment |           | 
|              | Trusts,    |           | 
|              | Henderson  |           | 
|              | Global     |           | 
|              | Investors  |           | 
+--------------+------------+-----------+ 
| Sarah        | Investor   | T: 020    | 
| Gibbons-Cook | Relations  | 7818 3198 | 
|              | and PR     |           | 
|              | Manager,   |           | 
|              | Henderson  |           | 
|              | Global     |           | 
|              | Investors  |           | 
+--------------+------------+-----------+ 
| Sue          | Intelli    | T: 020    | 
| Inglis/Chris | Corporate  | 7653 6300 | 
| Whittingslow | Finance    |           | 
|              | Limited    |           | 
+--------------+------------+-----------+ 
*Important Note 
This does not constitute a forecast of the profits or return from investment in 
the Company, and there is no guarantee of any particular level of profits or 
return being achieved and dividends will only be paid to the extent that the 
Company has profits for that purpose. 
 
 
- ENDS - 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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