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  • analyst112 analyst112 Feb 24, 2012 10:53 AM Flag

    Conference Call

    John Popeo

    I want to point out that there has been no discussion at the Board level at all to do anything with the dividend in terms of cutting it or reducing it. It’s our current intention to maintain the dividend and that’s what we perceive for the foreseeable future. And again there has been no discussion about reducing the dividend at the Board level.

    The transcript shows they are struggling with suburban properities but Occ rates are improving. Office Occ rates are improving and will continue to improve.

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    • Dividend is 24% tax free as return of capital. That will look good next year when dividend rates go up.

    • anal-

      1)Try reading the supplemental. cwh bought 6 suburban and 6 cbd properties. Seems a little strange for a company converting to a cbd focus.

      2)The occupancy rate of the 7.8m sf of purchases was 92% but the annual occupancy rate went down. So they are buying occupancy but not at a fast enuf rate to offset the ever increasing vacancy factor.

      3)Cwh has 37 cbd bldgs and 246 suburban bldgs. And that is after it spun off the gov bldgs and sold its mobs to snh at prices determined by portnoy.

      Why would he sell these bldgs to snh at low prices???

      3 reasons
      1)rmr controls snh.
      2)rmr controls FVE which runs the majority of the nursing homes in the snh portfolio. These nursing homes can be huge cash generators for the operators.
      So rmr has a double vested interest in the success of snh. And by the way-the last time I looked fve was renegotiating its leases downward-another portnoy conflict of interest.
      3)Selling the above assets means that they will have to be replaced by new cwh assets. So with 1.2b in assets, rmr collects another $6m override from gov alone.

      I doubt that the rockheads will get it. But so be it.

      • 1 Reply to bubbba1067
      • tacoboy,

        If you want to be relevant at least post current numbers,CWH owns 46 CBD buildings including Wacker.

        You somehow forgot to mention that quantity of buildings has no relationship to total sq footage.
        Even more important is how much income is derived from those measly 46 buildings compared to the current 272 suburban properties.
        The 46 CBD buildings total 18.826m sq ft and they will gross close to $500m with Wacker included.
        The 272 suburbans total 22.144m sq ft and they will gross $366.8m.
        Do the math anyway you like but even a pea brain can conclude the CWH is becoming CBD focused reit.

        At the end of 2007 CWH had 10,758m sq ft of CBD properties,today its 18.826m.
        At the end of 07 they had 22,328m of Suburban,today its 22,144