The cash dividend will be paid in full as a Property Income Distribution.
The UK's largest property company, Land Securities (LSE: LAND), has increased its first interim dividend payment for the current financial year from 7.2p to 7.4p.
The Real Estate Investment Trust (REIT) said the cash dividend will be paid entirely as a Property Income Distribution (PID). This means that investors who hold the shares in tax shelters such as ISAs and SIPPs can claw back the 20% withholding tax.
Commenting on the performance over the quarter, Land Securities said: "Our focus continues to be to secure income from our developments. We are pleased with progress and continue to see interest from occupiers, despite on-going uncertain economic news flow."
Investors should not underestimate the impact of the "on-going uncertain economic news flow" on the performance of REITs. Land Securities revealed that voids in its like-for-like portfolio rose from 3% to 3.2% as footfall in its shopping centres, which include Lakeside in Thurrock and The Galleria in Hatfield, declined by 2.8%.
That said today's hike in dividend should set the REIT on course for a full-year dividend payout of 30p. This would imply a prospective dividend yield of about 3.9% based on today's share price of 781p, which is 0.8% lower than yesterday's close.
Land Securities' dividend yield is one of the most attractive amongst the UK's top REITs -- bettered only by British Land's 4.9% yield and Segro's 6.3% yield. If you are looking for more income share ideas, you can download this free report to see the 8 Dividend Shares Held By Britain's Super-Investor.
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> David owns shares in Land Securities.