Eastern Housing declares 25% cash dividend for FY25

Eastern Housing Limited (EHL) has declared a 25% cash dividend for its shareholders for the financial year 2024-25, according to a price-sensitive statement filed on the Dhaka Stock Exchange (DSE) today.

The approval will be placed before the annual general meeting scheduled for 30 October, with 5 October set as the record date.

Following the dividend announcement, Eastern Housing's share price edged down by 0.57% to close at Tk87.60 on the DSE. 

In the previous fiscal year, the company had paid a 19% cash dividend, while in FY23 the payout was also 25%. 

For FY25, EHL posted earnings per share of Tk8.27, representing a 37% increase compared to the prior year. As of 30 June 2025, the company's net asset value(NAV) per share stood at Tk89.99 and net operating cash flow per share (NOCFPS) of Tk2.90.

Market analysts note that Eastern Housing's performance outlook is closely tied to regulatory developments in Dhaka's real estate sector. 

EBL Securities highlighted that a proposed amendment to the Detailed Area Plan (DAP), currently awaiting approval from the advisory council, seeks to nearly double the Floor Area Ratio (FAR) in many areas. If passed, the changes could significantly boost future revenues from apartment sales, though opposition from urban planners might slow down implementation.

Demand for real estate in metro-connected areas has already pushed up flat prices by about 25% in Mirpur and Uttara over the past two years, with values nearly doubling over the last five years. 

Analysts say the approval of the southern route of MRT Line-5, linking Gabtoli to Dasherkandi by 2031, is also expected to raise the value of EHL's land banks in Aftabnagar and Aminbazar.

Despite promising opportunities, the real estate sector continues to grapple with rising construction costs, intense competition, political uncertainty, and declining affordability among end-buyers, driven by high inflation and interest rates, said EBL Securities in its equity note.