With effect from 1 August 2019 Palace Capital converted to a Real Estate Investment Trust (REIT). As a REIT the Company must follow certain rules relating to the distributions it makes to shareholders, and how those distributions are taxed. 90% of the tax-exempt profit from Palace Capital’s property rental business has to be distributed to shareholders. This is known as a Property Income Distribution, or ‘PID’. Palace Capital can also distribute taxed income from its other activities, known as a Non-Property Income Distribution, or ‘non-PID’.
Dividends are paid on a quarterly basis in April, July, October and December. Dividends may be paid as Property Income Distribution (‘PID’), Non-Property Income Distribution (‘non-PID’) or a mixture of the two.
The Company paid its first PID in December 2019 in relation to the quarter ending 30 September 2019. All dividends paid in respect of periods ending before 1 August 2019 will be ordinary dividends not subject to the REIT regime.