I guess we will be getting the divi announcement either tomorrow or Tuesday and I expect it to be the same as last quarter.
At some point soon we should expect to see the stock price drift up I would think.
I have no paranormal powers to predict stock prices, but my opinion is that the dividend ensures that a price of around $4 is a good entry point. You are pretty sure to make money in the long run if your avarage price is $4. The stock just came from the $3's, put it didnt stay there for more then 3 weeks.
Reits have to distribute 90% of their income in order to keep their reit status. So they cannot pay an arbitrary dividend. This year the IRS has allowed them to pay the dividend in stock and that is what LXP and some other reits are doing.
Since every shareholder, except those electing to receive cash, receives the same percentge, it really does not dilute the individual's position.
However, I do agree with a previous poster that I wish we knew better how these cash savings are used.
Because every time they buy back debt at a discount it produces a profit...which in turn forces the dividend...if they weren’t a REIT well then they wouldn’t have to pay the dividend...they could pay a boatload in taxes instead.
Why don’t you buy the preferred and get the benefits of the debt reduction without worrying about what happens to the common...16.75% isn’t a bad rate given the risk.
All this diluting talk of existing shareholders is nonsense, we will get shares that compasate dilution so all stays the same, and the company saves money to buyback depth at discount.
You make a good point. They should simply set a number and forego further diluting the existing shareholders. I would love to see an analysis of where all this cash is going. The reduction to $.72 saved the company over $63 million and the further reduction of cash payable has allowed for them to save around $17 million per quarter. They continually claim that they are deleveraging their balance sheet. Who allowed the exchangeable notes to be sold? present management. They should at least forego their salaries and bonuses until the company is back on its feet and the board should forego their payments.
I agree. I expect it will be in line at $.18 per share from last quarter. The major question is whether or not they will force us to take a majority in stock. I would like to ask management if they intend to take their entire 2009 bonuses in stock and forego any cash bonuses such as the ones they took earlier this year. Taking a cash bonus in this environment continues to demonstrate just how out of touch present management and the board is with reality. Other REITS are cuttings senior managements compensation. Let's see what happens here.
I couldn't agree more that any bonus should be in the form of restricted stock which cannot be sold for 5 years. They should be treated no better than the shareholders are. I also agree that we will get the same dividend, with the same cash/stock split as last time.