The Lok’NStore Board is confident in the strength of the business and capacity of the management team to trade effectively through this period, on the basis of their results, and accordingly deems it appropriate to continue to pursue the Group's progressive dividend policy.
Lok'nStore's increasing dividend payments to shareholders reflect the growth in the underlying Cash Available for Distribution (CAD) which is up 12.5% over the year.
For the ninth consecutive year, and in line with a stated aim to provide predictable dividend growth, they are proposing to increase the annual dividend by 1 pence per share. The Group will therefore pay a final dividend of 9 pence per share on 8 January 2021 following the interim dividend payment of 4 pence per share in June 2020 making a total annual dividend of 13 pence per share, up 8.33% from 12 pence last year. The dividend is well covered by the Cash Available for Distribution of 21.3 pence per share, a pay-out ratio of 61%.
The final dividend will be paid to shareholders on the register on 27 November 2020. The ex-dividend date will be 26 November 2020. The final deadline for Dividend Reinvestment Election by investors is 11 December 2020.