Star Residence Invest wants to pay dividends with a yield of over 10%

Trust entities Star Residence Invest (REIT), a company established as a vehicle for investing in real estate assets, oriented towards distributing dividends obtained from rentals, has summoned shareholders for the balance sheet meeting, scheduled for April 29. The proposal includes the allocation of 1.22 million lei as dividends, according to the report published on the Bucharest Stock Exchange (BVB) website.

The money comes from the retained earnings, representing the surplus from the revaluation reserves, in the amount of 90% of the distributable amount, namely 1.77 million lei, reduced by the amount of 0.33 million lei that was used to cover the losses recorded last year and by another untaxed amount of 0.09 million lei. The unit dividend is 0.015927 lei, which, compared to the price in the second part of yesterday's trading session, of 0.124 lei per share, is equivalent to a net yield of 11.8%.

In the summer of last year, the company announced that it was in the process of liquidating its assets, because it does not record income from the rental of the real estate it owns. In September 2023, RCTI Company unilaterally terminated the rental agreement for the 14 apartments and 26 parking spaces in the Star Residence Invest assets.

The company has the stock symbol REIT, although in our country there is still no law regulating Real Estate Investment Trust entities. REITs are companies that own, operate or finance income-generating properties in various real estate sectors. They allow investors to obtain income from real estate without having to buy, manage or finance the properties directly.

Last year, Star Residence Invest recorded a loss of 0.63 million lei, according to the latest report published on the BVB website. In mid-2024, Momentum Capital from Bucharest owned 35.7% of the company, while Ion-Gheorghe Manea had almost 20% of Star Residence Invest, a company with a stock market valuation of approximately nine million lei.