Parkin, a provider of paid public parking facilities and services in Dubai, has announced its planned dividend payment for the first half of 2024.
According to a statement, following a robust operational performance in the first half, Parkin reported a net income of AED198.773 million ($54.1 million) and free cash flow to equity of AED135.643 million for H1 2024.
In line with its IPO guidance, the company will distribute the higher of net income or free cash flow to equity.
An interim cash dividend of AED198.773 million will be paid to shareholders at the end of October.
This dividend translates to a payment of 6.63 fils per share.
Strong performance
Eng. Mohamed Al Ali, CEO of Parkin, expressed his satisfaction with the company’s growth strategy, noting that it had led to a strong performance in the first half of the year following the record-setting IPO in March. He emphasized that Parkin’s top-tier operational, technological, and enforcement capabilities continued to yield remarkable results. He also highlighted pride in the achievements of the company, attributing them to the substantial efforts of the senior management team under the oversight of the experienced Board. Looking ahead, he stated that the company remained committed to providing attractive and sustainable returns to shareholders, indicating that Parkin’s inaugural interim dividend reflected both strong financial performance and confidence in the company’s growth and cash generation prospects.
Factors influencing dividend distribution
Furthermore, Parkin’s capacity to distribute dividends depends on several factors, including the availability of distributable reserves, capital expenditure plans, and other cash requirements. The decision to declare any dividend will be further influenced by future profits and the company’s business strategy, at the discretion of the Board of Directors and General Assembly.
Read more: Dubai’s Parkin reports $114.62 million in H1 2024 revenue, expands to 200,400 spaces
Minimum dividend payout expectations
Subject to these conditions, Parkin anticipates a minimum dividend payout of the higher of:
- 100 percent of net income; or
- Free cash flow to equity.
Commitment to shareholder returns
Additionally, the intent behind dividend distribution is to reflect the company’s expectations of robust cash flow generation and long-term earnings potential. Parkin plans to pay dividends semi-annually in April and October each year.
Annual review of dividend distributions
Moreover, The Board of Directors and the General Assembly will review dividend distributions annually, considering the company’s cash management needs for operational expenses, financing costs, and planned capital expenditures and investments. Additionally, the Board will evaluate market conditions, the current operating environment, and future outlook.
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