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KSL sets minimum 40% dividend payout policy

KUALA LUMPUR (March 16): Property developer KSL Holdings Bhd announced a dividend payout policy, involving at least 40% of its annual net profit from operations which excludes fair value gains.

In a filing with Bursa Malaysia today, KSL (fundamental: 2.6; valuation: 1.8) said the dividend policy would take effect from financial year ending December 31, 2015.

“Shareholders should note that this dividend policy, which shall take effect from the financial year Dec 31, 2015, indicates the board’s intention of rewarding shareholders and is not legally binding and therefore, subject to modification (including reduction or non-declaration thereof) at the board’s absolute discretion," KSL said

In a separate statement, KSL chairman Ku Hwa Seng said the dividend policy was not only intended to reward existing shareholders, but also to attract and establish a larger institutional-investor base in the company for the long term.

According Ku, the quantum and frequency of KSL dividends would be subjected to various factors. These include the group’s financial performance, cash flow requirements, capital expenditure and investment plans.

“The dividend policy is aimed at enabling shareholders [to] reap the returns in tandem with our expanding business.

"Our business is growing positively, buoyed by the stronger demand in our property development segment and the steady income from our investment properties, notably our integrated KSL City Mall and Hotel in the heart of Iskandar Malaysia," he said.

At 12:30pm, KSL shares fell two sen or 0.9% to settle at RM2.10, valuing the firm at RM1.99 billion.

This compares to its latest reported book value of RM2.09 a share.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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