klee, RSR may figure nav is 27.40 but in the recent CC mgt said it was $25-26. Additionally, they said their development pipeline already was almost nonexistent.
The only comments I have about your approach is that funny things happen to values when properties actually get put up for sale (not usually worth more, often less) and secondly there is a lot of drag caused by transaction fees.
While a few sales may be warranted if the market really gets cuckoo, burning the furniture to keep the house warm usually doesn't work out. The airlines are learning that lesson right now.
Like another poster said in an earlier post if you are going to cut your dividend do it only once. So if you are going to take the hit I say take the whole hit based upon 117% payout ratio worst case scenerio. I may be mixing my numbers up here but they said that the excess payout for 03 would be no more than $20M. With what 60M shares outstanding so that puts the cut near..... about 33 cents?
Yeah about 33 cents would take you to a dividend of 2.01 and $2.34 divided by 1.17 (the worst case scenerio negative payout ratio) takes you from $2.34 to about $2.00/share. That would put you at 100% under the worst case scenerio. Someone check my calcs please.
A dividend cut to 100% may not satisfy so you would theoretically cut further to say $1.80 so you are 90% of AFFO.
Its all speculation right now. I think we all should just set it aside until the next cc. By then Saddam will most likely be done assuming US intelligence knows exactly where he is at and some of the uncertainties get removed from the equation.