TSX:TNT.UN - Post by User
Comment by
flamingogoldon Sep 08, 2023 5:54pm
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Post# 35627003
RE:Ncib stalled lol
RE:Ncib stalled lolI can tell you with almost 100% certainty that suspending the disttribution would pummel the stock to penny status. Not a great strategy despite the numbers to support the idea. Selling the weakest properties in the portfolio while maintaining the payout works for me and I would bet most investors too.
giovinco wrote: I think the management realized that they need the cash to renegotiate better rates for the mortgage renewals. Just by holding more cash, they will have much better negotiation power.
Having said that, at close to 12% yield, they should suspend the dividend and just pay back mortgage. ~50M annually to pay back the mortage that comes up for renewal. Bring back the dividend when the interest rate starts to go down next year or so. This strategy might work and increase the share price when dividend is cut.