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Dividends

Pakistan Hotels Developers Ltd. Announces First Interim Cash Dividend Following Regent Plaza Hotel Sale

Strategic Insights

— 1 min read

Pakistan Hotels Developers Ltd. (PHDL) has announced its first interim cash dividend for the fiscal year ending June 30, 2025, following the sale of the Regent Plaza Hotel to the Sindh Institute Of Urology And Transplantation (SIUT) Trust. The Board of Directors, in a meeting held on July 8, 2024, recommended an interim cash dividend of Rs.725 per share, marking a significant milestone for the company. This dividend payout is sourced from the sale proceeds received from the buyer of Regent Plaza Hotel, a four-star hotel in Karachi. The SIUT Trust aims to convert the hotel into a healthcare facility to expand its free-of-cost services for patients.

Key Takeaways:

  • The Board of Directors of PHDL recommended an interim cash dividend of Rs.725 per share, translating to a dividend rate of 7250%.
  • The dividend payout is sourced from the sale proceeds of Regent Plaza Hotel, which was sold to SIUT Trust for an undisclosed amount.
  • The SIUT Trust paid 80% of the sale proceeds to PHDL on July 01, 2024, in addition to the 10% down payment already paid.
  • The physical possession of the property was handed over to SIUT Trust on July 01, 2024, with PHDL allowed to continue operations till July 17, 2024.
  • The entitlement to the dividend will be available to shareholders whose names appear on the company's register of members as of July 15, 2024.
  • The company's share transfer books will remain closed from July 16, 2024, to July 18, 2024, to facilitate the dividend distribution process.
  • SIUT Trust plans to convert Regent Plaza Hotel into a healthcare facility to expand its free-of-cost services for patients.
  • PHDL obtained the requisite approvals from designated authorities for the title transfer process of Regent Plaza Hotel to SIUT Trust.

Statistics:

  • Interim cash dividend: Rs.725 per share
  • Dividend rate: 7250%
  • Sale proceeds received by PHDL: Not disclosed
  • Amount paid by SIUT Trust: 80% of the sale proceeds and 10% down payment
  • Date of physical possession transfer: July 01, 2024
  • Date of entitlement to dividend: July 15, 2024
  • Closing date of share transfer books: July 16, 2024
  • End date of PHDL's operations at Regent Plaza Hotel: July 17, 2024

Sources:

  • A notice sent to the Pakistan Stock Exchange (PSX) on Monday
  • A statement from the SIUT Trust trustee on Sunday
  • A previous press release from PHDL on July 1, 2024

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