Its disappointing on two levels. One, they had almost cut the dividend in half at the beginning of the year and indicated that they felt comfortable with the .29 payout. This has to indicate poorer operational results than they were anticipating. Two, This is probably not a great sign that the financing is going well. They are only "saving" about $5.5 million with the reduction. Just not a good sign when they feel the need to keep an extra $5 million - when they are looking at refinancing a $500 line of credit.
It will be the cheap beer this summer unfortunately.....
I just can't believe they cut it again! They defended the last 29 cent dividend payment, and claimed it was substanable throughout 2009. I can't believe they needed to cut. They save only $5.5 million cash this quarter. I only wish I sold when the stock was $7. Now the yield has been cut down to 11-12% while I wait. I am not happy that the board did this. Does the $5.5 million mean so much? This was a really bad move on their part. Flip flops are reserved for politions not reit executives!
Well the 5.5 million they are saving would only buy about a million shares. So I don't think that is the plan.
I think they are going to wait out the financing as long as possible.......but then again I really thought the .29 dividend would be the announcement. But it was .15, so a this point issuing equity wouldn't totally shock me - but it would still greatly disappoint.
Sorry to keep referencing SL Green, but there was a $5 run up in the shares the day before the secondary offering. I wonder if the gov. gave TARP money to the banks/REITS to run up their shares so they can get a better price for the secondary offering, or if there was some other king of manipulation. One poster on the SLG message board called the secondary offer when the price went up $5.00 last Friday.
Additionally, I was reading posts on the GRT message board and they are all excited about TALF saving GRT, but the positive sentiment on TALF for PEI isn't apparent here from the postings so far.
Does anyone think PEI will have a run up before any secondary offering takes place and could this be the reason they are saving divi money, to buy up shares before a secondary offering?
You guys know PEI inside and out, much better than I do.
very disappointing- they had cut earlier saying that they thought they were comfortable at the .29 level. Saving 20 million cash on the year?
Ill be lightening up, buying back in the 3s maybe even 2's at some point. Too bad I didnt sell more in the 7's
Div is too low for a multiple of FFO more than 2 or 3 now, 12% for the risk in this stock is not enough... have to see how the refis go....
I guess I missed that one! I really thought that the div was safe. This opinion took into consideration the calls and refinancing last year. I do not know if this portends worse news, like David. It could be a safe move, just in case. I am not selling my shares, and I wish they had made a more definitive statement.....
I just re read the announcement. I think the move is an insurance policy, not reflective of more bad news, but is just a safety play. I say this because they have to pay out 90% of GAAP earnings. They have adjusted payouts to what they think is the requirement. FFO is much higher and will be, so they are retaining significant funds. I do think they should have paid in stock, or offered that option.
there are prefereds that are paying well- and utilities that are still yeilding 18% on margin. Pei is on the ropes and bad news keeps people saving cash--... malls are expensive operations to maintain. I was expecting a 9 cent div and only because due to pride they will insist on keeping a strong line of div pay outs.. next div will be cut in half again. I can see this stock settling in at $3
Your conjecture stated as though fact is really a waste of this boards time. I haven't read a single thing you've posted that involved any factual data or analysis. You are very clearly not interested in seriously investing in PEI, just looking to day trade it. You've soured this board with your wasted posts. This is directed towards ccriselmae. Everyone else can go about their business as usual.