TSX:SGR.UN - Post by User
Comment by
theinvestor22on Jan 03, 2021 5:42pm
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Post# 32212393
RE:RE:Dividend cut
RE:RE:Dividend cutI agree that recently raised funds will likely be used for an accretive acquisition(s).
Regarding the PR, it should be noted that it was trending down into the mid 80s before covid temporarily drove it up to an average of just over 100% for the latest 3 quarters. Had it risen to say 110-120% then a distribution cut might have been in the cards, but a temporary increase to about 100% doesn't necessarily mean that. And, it seems collections have been going well according to the CEO.
Also, keep in mind this from a while ago: "Slate Grocery REIT created significant value for unitholders in the second quarter by closing an opportunistic portfolio transaction which ranks as the REIT’s second-largest acquisition since inception. The highly accretive seven asset portfolio was acquired for $90 million, or $144 per square foot and will add $0.10 per unit of FFO growth once the net operating income flows through the books."
Of course, predicting the future is difficult at the best of time, but I'm not seeing the need for a cut at present.