Lendlease’s Multi-Currency Dividend Plan Raises Questions on FX Risks

Lendlease Confirms Dividend Details for FY25

Lendlease Group has updated the market on its dividend distribution for the financial period ending 30 June 2025. The company announced an ordinary dividend of AUD 0.16955951 per fully paid ordinary security, with a franking level of just over 61%, reflecting a healthy tax credit component for Australian investors. The dividend will be paid on 17 September 2025, with the record date set at 25 August 2025.

Dividend Reinvestment Plan Price Finalised

Alongside the dividend announcement, Lendlease confirmed the Dividend Reinvestment Plan (DRP) price at AUD 5.521 per security. Notably, there is no discount applied to the DRP price, which is calculated as the average volume weighted price over five consecutive trading days following the record date. New securities issued under the DRP will rank pari passu with existing securities, ensuring equal rights from the issue date.

Multi-Currency Dividend Payments

In a nod to its international investor base, Lendlease detailed currency arrangements for dividend payments. Securityholders in New Zealand and the United Kingdom will receive dividends in their local currencies; NZD and GBP respectively; based on exchange rates fixed as of the record date. The equivalent dividend amounts are NZD 0.1877 and GBP 0.0816 per security. This approach simplifies dividend receipt for overseas investors and mitigates currency risk.

No Approvals Required, Clear Timetable

The company confirmed that no external approvals, such as security holder or regulatory consents, are required ahead of the dividend payment. This streamlines the process and signals confidence in the distribution. The timetable is clear, with the ex-dividend date on 22 August 2025 and the DRP election period closing on 1 September 2025.

Investor Considerations

Investors should note that the default option for DRP participation is non-participation, meaning cash payment unless an election is made. Additionally, there is a minimum participation threshold, though no maximum limit. The detailed tax components and distribution notices will be available on Lendlease’s investor website, providing transparency on the franked and unfranked portions of the dividend.