![]() Seven Dividend Growth Stocks Rewarding Shareholder.Disney's Dividend Suspension Increased My Dividend.Five Dividend Growth Stocks Raising Shareholder Di. ![]() Peter Lynch Articles For Worth Magazine.A low collection rate in 12%, such as Tanger Factory Outlets is basically telling you that the dividend is toast ( it was suspended yesterday). ![]() If you want to think about which dividend is at risk, think about this chart and collection rates. This is an interesting chart I found on Twitter, which shows April rent collection rates. I will turn off the DRIP for this stock too. I believe NNN is at a high risk of a dividend cut. Sadly, National Retail Properties (NNN) collected only 52% of rent last month. The first one received a 95% collection rate on rent, while the second company collected on 83% of rent in the most recent month. If I were to sell Simon Property Group, and keep the money in REITs, I would probably replace it with W.P. It is possible that Simon is deteriorating at a faster pace over the course of the past 2 - 3 quarters. Yet, Tanger kept deteriorating over the next 2 - 3 years. Both Simon in late 2019 and Tanger in early 2017 we yielding about 5%, had low valuations, and FFO/share growth was grinding to a halt. It did remind me at the time of Tanger Factory Outlets in 2017 however. When I reviewed Simon Property Group (SPG) in December, I concluded that it is a high yield and a high-risk investment. Hopefully they are doing something behind the scenes to renegotiate the deal and its terms ( or walk out). However, Simon management is refusing to say anything about it. It is basically lighting shareholder funds on fire, if they really were to acquire Taubman at the original terms from February. This deal needs to be renegotiated, because those assets are impaired as of today. Subsequently, we had all the lock-downs, the economy going into a tailspin, but this deal is still going as if it is going to happen at the original terms. Back in February, Simon (SPG) decided to acquire Taubman (TCO) for $53/share in cash. It also seems to me that the Taubman Centers acquisition may have to be re-negotiated. It sounds to me like they are trying to hide something, when we all know and expect to hear that things are not rosy. I also do not like the fact that they have not shared the percentage rent collected from tenants, which is a statistic that is now commonly shared by many REITs. In my opinion, Simon's management is not frank and upfront with their investors. I am perhaps sticking to this stock for educational purposes only, because owning a stock forces me to keep up on it, as I am fed press releases, 10-k and 10-q reports on it. That being said, I am dissapointed by corporate double-speak. I am pretty certain that they are cutting the dividend with this ambiguous message, but I will not sell until they state it firmly. I will stick to my strategy for now, and not sell. This is incorrect - they are keeping a dividend payment, which mostly likely will be lower than the last quarterly payment. Some investors have misread this statement to say that they will keep the dividend unchanged. The way this was worded, implies a dividend cut in my opinion. But they leave open the possibility that there will be a dividend cut. On one hand they are announcing that they will pay a dividend, in order to maintain REIT status. ![]() They remind me of a teen-ager who procrastinates on a difficult assignment, because they do not want to do it, and face the consequences. It gives the company some time to defer the difficult decision on cutting the dividend. This is a very carefully crafted message that probably took their investor relations team 10 days to come up with. Simon intends to maintain a common stock dividend paid in cash and expects to distribute at least 100% of its REIT taxable income. Simon's Board of Directors will declare a common stock dividend for the second quarter before the end of June. They did mention the word dividend in their latest press release, but I found it to be very ambiguous. I was expecting them to announce their dividend announcement as part of that release, given the fact that they are about 2 weeks late to their usual dividend declaration. I read the latest press release for Simon Property Group (SPG).
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