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Neinor Launches a Contingency Plan for Covid-19 and Cancels its Dividend Payment

The property developer Neinor Homes has launched a contingency plan to mitigate the effects of the Covid-19 coronavirus crisis, which has resulted in a fall in leads, a slowdown in reservations and the cessation of construction at its building sites.

Borja Garcia Egocheaga 2. CEO Neinor Homes 1024x682 1

The large real estate companies are starting to act in the face of the Covid-19 crisis. Neinor Homes, one of the three largest residential property developers in the country, has launched a contingency plan that includes the cancellation of its dividend payment to shareholders and a readjustment of its investments in order to preserve cash in the current situation.

“The company has taken the decision to postpone the planned dividend payment in order to be prudent and responsible in the current situation,” said Neinor this morning.

The company, which earned €64 million in 2019, up by 28% compared to 2018, promised to pay its shareholders a total dividend of €200 million during the period 2021 and 2022. Following the publication of its results for 2019, the property developer led by Borja García Egotxeaga decided to bring forward the payment of a €40 million dividend to the first quarter of 2020, charged against 2019, but that payment has now been postponed as a result of the Covid-19 coronavirus crisis.

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