PostNL completes €150 million sale-and-leaseback agreement
Resumption of dividend over FY 2020 expected
The Hague, The Netherlands, 5 November 2020
Highlights
- Transaction to sell and lease back five sorting centre locations in the Netherlands completed
- Proceeds of €150 million improve 2020 free cash flow
- Positive effect total transaction on adjusted net debt position and leverage ratio
- Intention to resume dividend over FY 2020 confirmed
PostNL today announced that it has completed the sale-and-leaseback transaction with Urban Industrial relating to four mail sorting centres in the Netherlands, located in Amsterdam, Rotterdam, Zwolle, ‘s-Hertogenbosch and the international sorting centre in The Hague. The transaction was previously announced on 6 October 2020. Through this transaction, PostNL strengthens its balance sheet and releases value for the company and its stakeholders.
PostNL receives proceeds of €150 million from the sale-and-lease-back transaction. The related book gain of around €61 million will be labelled as a one-off result in Q4 2020 and as such will not impact normalised EBIT and normalised comprehensive income. The net proceeds improve the free cash flow for 2020. Taking into account the long-term lease arrangements related to this transaction, the impact on the adjusted net debt position will be approximately €97 million, improving the leverage ratio.
The improved financial position allows PostNL to accelerate the digitalisation of its activities in a number of key areas as part of the transformation. PostNL reconfirms its intention to resume dividend for FY 2020, based on this transaction and the strong business performance in 2020. The dividend over FY 2020 will be proposed to shareholders at the Annual General Meeting, which will be held in April 2021.
Urban Industrial is a Dutch company focused on the acquisition and long-term exploitation of industrial real estate. Urban Industrial’s total real estate portfolio comprises approximately 750,000 m2.
About PostNL
We are PostNL, the mail and logistics solutions provider for all. With our mail and parcel deliverers who get everywhere, our over 4,800 PostNL locations and 11,000 postboxes, we are always nearby. We aim to be our customers’ favourite deliverer by making it as easy as possible for them to send and receive parcels and letters. Our over 37,000 people are right at the heart of society. On weekdays, we deliver an average 1.2 million parcels and 8 million letters across the Benelux region. Our focus is on quality for our customers, creating opportunities for our people and adding value for our stakeholders through growth, digitalisation and sustainability initiatives.
We optimise and support our physical networks by using smart digital solutions and launching new propositions that create value for our customers. We build long-lasting working relationships by acting as a good employer and client for everyone who works for and with us. To make our deliveries as sustainable as possible, we cover a lot of kilometres on foot or by bicycle or e-bike, provide innovative city logistics, use cleaner fuels, and use electric vans and light electric trucks. PostNL NV is a listed company with revenues of €3.5 billion in 2021. We provide deliveries of mail and parcels, logistics solutions for e-commerce, and cross-border solutions.