Parkin to Pay Interim Cash Dividend of $54.12 Million

Parkin Company, the largest provider of paid public parking facilities and services in Dubai, on Friday said that it will distribute an interim cash dividend of $54.12 million to its shareholders for the first half of this year by end of this month.

Following a strong first half operational performance, Parkin reported a net income of $54.12 million in the first six months of this year and Free Cash Flow to Equity of $36.93 million, the company disclosed this to Dubai Financial Market (DFM) in a regulatory filing this morning.

As guided at IPO, the Company will distribute the higher of Net Income or Free Cash Flow to Equity and on a per share basis, the dividend payment amounts to 6.63 fils per share.

Speaking on the occasion, Parkin CEO Mohamed Al Ali said that he was pleased to report that Parkin’s growth strategy delivered a strong first half year performance following its record-breaking IPO in March and the company’s best-in-class operational, technological and enforcement capabilities continue to drive impressive results.

“I am proud of the performance that we have delivered, which is testament to the considerable efforts of the senior management team, with oversight from our experienced Board. Looking ahead, we are committed to providing attractive, sustainable returns to our shareholders. Parkin’s maiden interim dividend reflects both our strong financial performance and continued confidence in the Company’s future growth and cash generation prospects,” he added.

Dividend Distribution

Parkin’s ability to pay dividends is dependent on several factors, including the availability of distributable reserves, capital expenditure plans and other cash requirements. Any level or payment of dividends will depend on, among other things, future profits and the Company’s business plan, at the discretion of the Board of Directors and General Assembly.

Subject to the aforementioned conditions, Parkin expects to distribute a minimum dividend pay-out of the higher of 100% of Net Income or Free Cash Flow to Equity. The distribution of a dividend is designed to reflect the company’s expectation of strong cash flow generation and expected long-term earnings potential.

The Company intends to pay dividends semi-annually in April and October of each year and the dividend distribution will be reviewed annually by the Board of Directors and the General Assembly, taking into account the Company’s cash management needs for operating expenses, finance costs and planned capital expenditures and investments. Additionally, the Board will consider market conditions, the current operating environment and future outlook.

Parkin’s Monopoly

Parkin Company is operating approximately 200,000 paid parking spaces and has a monopoly on Dubai’s on and off-street paid public parking market and a 91% market leading share of the total on and off-street paid parking market.

Under a 49-year Concession Agreement with Dubai’s Roads and Transport Authority (RTA), Parkin has the exclusive right to operate a portfolio of public on and off-street parking (177,000 spaces) as well as public multi-storey car parking facilities (3,000 spaces).

Parkin also operates 20,000 certain developer-owned parking facilities through partnership agreements across the Emirate. Additional revenue streams include enforcement, the issuance of seasonal permits, parking reservations and other commercial activities.

By deploying state of the art digital payment solutions and intelligent parking management systems that utilise artificial intelligence and big data analysis, Parkin’s 4.2 million customers successfully conducted 61 million parking transactions during H1 of 2024.