Financial analysisWell I spent some time going through their financial statements (Balance Sheet, Income Statement, & Cash Flow Statement). Here are my findings:
All figures are for 9 months ending September 2015.
$50M - Cash generated from operations
($11.6M) - Cash spent on investing activities (think maintenance costs)
$39.4M - Adjusted funds from operations
($19M) - Dividends paid to shareholders
So we have roughly a 50% payout ratio on AFFO, which is good.
($15M) - Interest expense
So while you would never do this calculation, here it is 87% of AFFO goes to pay dividends & interest. I'd include interest because they do have a substantial amount of debt. However that being said, this is a cash generating behemoth. They also have $208M in long term debt, of that $208M, $125M is unsecured bearing a rate of 8.125%, which is insanely high. So I think if they can refinance this in the 5% range when the time comes, that would be great or possibly if the share gets up north of $15, do a share issuance & pay down some debt. Then use the spare cash the company has to buy back shares. All things said, this company knows how to generate cash, great buy at $10.50 range IMO.