Senior Housing Properties (SNH) Message Board
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Dilution freaks wrong again
They just refuse or are not able to understand that new equity gets levered-up with cheap debt into new properties which end up being accretive to ffo.
"NEWTON, Mass., Apr 04, 2011 (BUSINESS WIRE) -- Senior Housing Properties Trust (SNH) today announced its regular quarterly common share dividend of $0.37 per common share ($1.48 per share per year). The regular quarterly dividend will be paid to common shareholders of record as of the close of business on April 15, 2011 and distributed on or about May 12, 2011. "-
If SNH earns $1.85 in FY 2011 (consensus prediction of analysts on Yahoo earnings link), the dividend will have to go up to at least .41625 per quarter right? Aren't REITs required to distribute at least 90% of earnings?
$1.85 / 4 = .41625
A nice 12.5% jump from the current .37 dividend.- 2 Replies to sky_king_66
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<<<Aren't REITs required to distribute at least 90% of earnings?>>>
They are required to distribute 90% of taxable income to maintain REIT status.
Do not confuse gaap earnings with taxable income. They frequently differ greatly. -
The 1.85 is FFO,the 90% pertains to net income.
I do believe they will raise the div this year to .38 per Q
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Yup. They don't undertsand if you raise $10 million that it isn;t debt, it is an asset. It doesn't just disappear. Of course it can be wasted but, that is another issue.
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Just confirmed by 1Q report. Dilution freaks are soooo reliable to offer irrational drops in price so others can buy a bargain.
Thank you, dilution lemmings. -
You're absolutely RIGHT!!
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