Unfranked Dividend Signals Caution as Lendlease Maintains Payout at AUD 0.0604

Dividend Announcement Overview

Lendlease Group (ASX: LLC) has confirmed an ordinary dividend distribution of AUD 0.06044049 per fully paid stapled security for the half-year period ending December 31, 2024. This dividend will be paid on March 12, 2025, with the ex-dividend date set for February 21 and the record date on February 24. Notably, the dividend is unfranked, meaning it carries no franking credits, which has implications for investors’ tax liabilities.

Dividend Reinvestment Plan Details

The company continues to offer a Dividend Reinvestment Plan (DRP) for shareholders who prefer to reinvest their dividends into additional securities rather than receive cash. The DRP is fully operational with no discount applied to the reinvestment price, which is calculated as the average volume weighted average price (VWAP) over five trading days following the record date. Eligible shareholders must lodge their DRP election by 5:00 pm on February 25, 2025.

Currency and Tax Considerations

Lendlease has also outlined currency arrangements for international securityholders. Those resident in New Zealand and the United Kingdom will receive their dividend payments in local currencies (NZD and GBP respectively), with exchange rates determined as of the record date. The dividend is 100% unfranked, which means it does not carry Australian franking credits and will be fully taxable as income for Australian investors. Detailed tax component information will be made available on the company’s website ahead of the payment date.

Context and Market Implications

This dividend announcement reflects Lendlease’s ongoing commitment to returning value to shareholders amid a complex real estate market. The unfranked nature of the dividend may reflect the company’s earnings composition or tax positioning. Investors will be watching closely how the market responds, particularly given the steady dividend amount and the absence of a DRP discount, which can sometimes incentivize reinvestment.

While the dividend amount is modest, it signals stability and confidence in Lendlease’s cash flow generation for the period. The company’s clear communication on dividend timing and reinvestment options provides transparency and choice for investors, which is critical in maintaining shareholder trust.