Federation Centres says its proposed merger with Novion won't reduce the shareholder dividend, as the property group posts a slight dip in half-yearly net profit.
The company said net profit for the six months to December 31 fell 1.9 per cent to $222.5 million, down from $226.7m in the first half of fiscal 2014.
But underlying earnings of $129m for the first half increased 8.6 per cent on the previous corresponding period.
Revenue for the group lifted 1.4 per cent to $272.4m from a previous $268.7m.
Federation Centres will pay an interim dividend of 8.4c, up from 7.5c for the first half of the 2014 financial year.
“The half year results are a further demonstration of the progress Federation Centres has made in terms of both financial and operational performance,” chief executive, Steven Sewell, said.
Mr Sewell said Federation would focus on conservative gearing levels and lower funding costs for the rest of the 2015 financial year, and said the proposed $22 billion merger with Novion would not reduce the group's expected distribution, based on guidance of 16.9c per share for the full year.
"If the merger with Novion proceeds Federation security holders are expected to receive a final distribution for fiscal 2015 that is at least equal to current guidance of 8.5c per security." he said.