I am interested in the numerous comments about SFI cutting, reducing, or eliminating the dividend. SFI is a REIT. Therefore, it pays at least 90% of its taxable income to shareholders as a dividend to avoid corporate taxes.
If it the dividend gets cut then income is down. Reciprocally, if the dividend stays the same or goes up then income was static or went up.
Did SFI change their REIT designation or am I missing something? From where is all this dividend gloom and doom coming?
dude, they can be forced to de-reit by the banks.. just look at the history on novastar or new century... Novastar Financial Inc. (NOVS.PK).. sfi is toast w/ out wall st's bal sheet which is dwindling by the day.... sfi is a ponzi scheme.. they need billions $$ to keep the shell game going.. we are getting very close to the maximum point of loaded to the gills sucker diluted eqty that the global investor base will stand for.. google bradford and bingley and hit news....sfi = duncan donuts 0000000000
So far I still haven't seen an explanation of why anyone thinks the dividend is in jeapordy. All the statistics being thrown about clearly show why the share price has suffered but not how the taxable income and, thus, the dividend may be cut.
I am also unclear on the control a bank has over a REIT designation. I thought that designation was via the SEC and the IRS. How could a bank make them "de-REIT?" I can see a bank forcing asset sales, higher capital costs, even onerous security provisions; but, to my knowledge, they don't control the REIT designation.
SFI is not cutting, reducing or eliminating their dividend nor have they changed their designation. They are still a REIT. All the doom and gloom are coming from a bunch of people who know nothing about iStar and are just wanting iStar to go down.
From the transcript of their 1st quarter earnings anouncment:
"Based upon our current view of the market and the continued disruptions in the real estate and housing markets, we now expect 2000 diluted AEPS of $3.20 to $3.60 and diluted GAAP earnings per share of $3.70 to $4.10. This range is below our previous guidance and takes into consideration a more conservative outlook with respect to the macroeconomic environment, the longevity and depth of the credit crunch, and our expectations for higher provisions for loan losses this year. While we expect our AEPS to be lower this year, our dividend is very well covered"