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Duke Royalty declares maiden dividend

By BFN News | 08:05 AM | Thursday 22 June, 2017

Duke Royalty's board has approved a maiden dividend for the year ended 31 March and confirmed that it was targeting a minimum initial annual dividend yield of 5% for the 2018 financial year. Duke Royalty said that fiscal 2017 had been transformational for the company which had commenced operations as the first UK quoted diversified royalty company. It said that during the year, the board and investment committee focused on evaluating a number of opportunities, in order to create a near-term pipeline of royalty financing transactions. It said: "To finance the near-term pipeline, the company commenced a fundraising early in 2017. "The financial year culminated with the company's successful raise of £15 million on 17 March 2017, bringing a number of new institutional shareholders onto the company's register." It added: "Post financial year end, on 6 April 2017 the company announced its inaugural royalty financing agreement for €8.0 million with Temarca, an established European river cruise provider. "With a cash-on-cash yield of approximately 13 per cent, this inaugural royalty financing agreement will result in Duke operating at a cashflow positive run rate following the commencement of monthly distributions in May 2017." Duke Royalty posted a loss of £1.4m for the year - down from £4.0m last time. The group said that fiscal 2017 involved the re-admission of the company and the equity placing to AIM, with numerous other one-off costs. It said the company had committed to significantly reduce operational expenses for the financial year ending 31 March 2018. It said: "As outlined in the company's admission document published on 20 March 2017, board fees and other service fees have been voluntarily reduced in order for the company to implement and sustain a quarterly dividend policy for fiscal 2018." Duke Royalty said the the board had approved a maiden dividend of 0.5 pence per share with the ex-dividend date being 29 June 2017 and the record date 30 June. And it said the company was targeting a minimum initial annual dividend yield of 5% for fiscal 2018 and intended to pay quarterly dividends going forward. At 8:05am: (LON:DUKE) Duke Royalty Limited share price was 0p at 39.75p Story provided by

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