TSX:TNT.UN - Post by User
Comment by
sclardaon Mar 15, 2023 9:28pm
259 Views
Post# 35341536
RE:Positives I see from this
RE:Positives I see from this
Yes looking at the financial statement excluding lease termination fees AFFO for 2022 was aprox. 52 cents per share or aprox. $48 million per year for 2022. At the same time they payed out 59.5 cents per share in distributions or aprox. $55 million in distributions for a 115% payout ratio for last year.
Assuming AFFO for this year is aproximately the same as last year around $48 million per year at the new distribution rate of 29.7 cents per year which will cost the company aprox. $27.5 million per year they will have the payout ratio down from 115% to aprox. 57% and will have aprox. $20 million per year left over in AFFO.
Hurts for existing shareholders but something had to be done although its a steeper cut than i expected. With the new shareprice of $3.50 which with a 29.7 cent yearly distribution gives a yield of aprox. 8.5% with a 57% payout ratio which leaves the company aprox. $20 million per year in leftover AFFO after diividend and with some very nice buildings with good government and corporate long term tenants this stock which is now in a much more solid and sustainable financial situation is looking quite interesting to me and i am sure many others.
Although the distribution has been reduced the company is still bringing in aprox. $52 cents per share per year in AFFO. At $3.50 per share that is an aprox. 15% total Cash return per year. And while that money will not go to shareholders it will benefit the company in time. That along with the low payout ratio should give new investors more confidence in this company and should help the shareprice in the months and years to come.
Good luck to all.