I believe they are required to payout at least 90% of earnings as a dividend in order to maintain their REIT Tax status. So...they are prevented from cutting the dividend simply to bring it in line with industry standard.
It's 90% of "taxable income" that they are required to payout and since their taxable income is inclusive of "depreciation", it actually represents a much lower number relative to their earnings. So they can cut the dividend quite a bit and still comply with the REIT requirements. Actually, whether they continue to pay the dividend, or cut it and use the savings to buyback stock, both are favorable for stockholders. Either way you slice it, the current price is a bargain relative to the quality and earnings power of the assets they own. The market is valuing this company at a 10 cap on EBITDA, which is far too high (the market perceives that EBITDA will be declining over the next few years given the recession and consumer pullbacks), but I think it is overdone. I think the stock will eventually find its way back up to the $10 to $14 range.