Shocked and disappointed As a unit holder, two, and only two metrics are important to me. 1- distributions and 2- unit price. The other measures and metrics are noise.
On these measures, I feel management has done is a disservice. Clearly the cut in distributions affected my first measure. So did the loss of the drip. The market will determine the fate on the other when the markets open.
Here's my beef. I understand the dilutive affects of the drip. I was clearly benefitting from it. However, I also supported the trust many times over the years by buying units through private placements and on the open market. I purchased units through private placements in 2013 at $36, $33 and $31 per unit. I was on the drip then so I my distributions were anti-dilutive then. I didn't benefit from the drip for long periods of time. Now that it swings the other way, I feel betrayed as I have supported them over the years through all the ups and downs.
Secondly, they have the AFFO to support the $2.24 distribution. Don't forget, they INCREASED the distributions in February 2013. That signalled a strength and sustainability to their future cash flows.
One of the comments that bugs me in their release is their reference to the analysts' anticipated AFFO #s. Come on. Who runs the company- the analysts or management? I could be wrong but I get the sense management knows something or they anticipate something in the future and they aren't telling us. I hope they aren't planning a fast one ( privatize it on the cheap, change the management fee structure to benefit the insiders, etc....)
Back to my original comments about the two most important metrics. In my opinion, they should take out a big much of shares at $20, this would increase AFFO. Then they should have INCREASED the distributions. Clearly, they would have scored well on both of my measures.
Now that I lost the drip, I expect I will redirect the cash to other investments, hence the importance of DREAM to my overall portfolio will decline with time. This is unfortunate.
I am fuming mad.
Marc