I can't see how they are going to keep up this level of dividends with the adjusted earnings (assuming that is FFO) either not at that level or below. I have the preferred stock so my div should be safe, but I'm guessing they will have to cut the dividend.
If you listen towards the end of the Q&A session of the call, an analyst did see a problem with the dividend. SFI can cover the dividend for this year due to the sale of the forest land (250 mill). But SFI could not give guildance for next years dividend. The issue depends on so many factors: profit from high risk loans, sale of property (most are undervalued on their books), business picking up (depends on credit market loosening and not going into a recession), the result of 30 non-performing loans. I would highly recommend listing to the call and print out the press release.
At this price (22), SFI is fully valued considering the risk. Book value is around 19-21 (adjusting for true value of property, not purchase price).
Seems like they are likely to pay out 100% of adjusted earnings. Considering that REITs have to pay out 90% of earnings, does not seem that they will have to cut the div. Or at least not by much. Besides a 17.4% yield can fall say by 10% and still be v attractive.