RE:RE:RE:RE:how much cash will the divvy cut generate? If you look at it from the basic, only thing the dividend cut has done is shift the money away from shareholders to the company itself. What else has it done? It doesn't change anything in the income or other perspective, so it is clearly a bad thing for the shareholder. It won't generate any cash because they will need it to replace the DRIP. Though the share price has gone up because of the way investment bankers do net present value based on future cash flows. Which doesn't really make sense, like how amazon and facebook is valued at out of earth bubbly price waiting for a crash.
Anyway, they have been spending so much money to buy back shares at over $20 last year and they are now saying they want to save money by cutting a dividend? Does it really make sense? They could have saved money by not buying back at over $20. Their balance sheet would have been stronger. This shows clearly that the management is dumb.
They do not care about shareholders. They just want the share price increased for their stock option.
Also, I do not see how they are good at tenant retention, when the big law firm is moving out of Scotia Plaza and Telus just built their own building in Alberta. If Scotia bank was to move at the end of the lease, Dream might not survive. Must think why did Scotia sell their building in the first place, considering Scotia is not dumb if cap rate out weighs the benefit. For empty Alberta buildings, if they do not sell then those are actually costing dream money via maintenance cost plus hefty taxes. So, the valuation is done correctly. Empty building becomes a liability rather than assets. Who would buy those buildings at market price when oil is down like crazy?
This is called modified Ponzi scheme. Short term gain but won't last long run. I'd buy back in if share price went below $10.
I mean, financial institutions might have just increased the price to sell out their large chunks of shares. They can easily increase the share price by trading between themselves and then sell to individual investors at the higher price. When they are done selling, the price would crash down the toilet. You'll see. It will take some time before they are done though, so enjoy your up feeling while it lasts.