RE:RE:Strong Q3 growthddong66 wrote: FFO payout rate 93.8%. Am I wrong? Thanks
No you aren't wrong. The payout ratio only went up because it was impacted by a one time item.
If anything it should show you how stable this REIT is, that it was hit by a tenant failure and they still came in way under 100% on the payout... expect it to drop back to the 80s next quarter...
from the news...
The REIT's FFO payout ratio through the third quarter of 2017 was 93.8 per cent (81.4 per cent including the benefit of the REIT's distribution reinvestment plan program) compared with 82.2 per cent (69.8 per cent including the benefit of the REIT's DRIP program) during the same period in 2016. The REIT's FFO payout ratio through the nine months ended Sept. 30, 2017, was 90.2 per cent (76.5 per cent including the benefit of the REIT's DRIP program) compared with 83.6 per cent (69.7 per cent including the benefit of the REIT's DRIP program) during the same period in 2016.
FFO payout ratios in 2017 were impacted by a one-time bad debt including NOI downtime associated with a tenant failure in the second quarter of 2017. On June 1, 2017, this space was leased to a new tenant with leasing costs of $259,000 and a 4.2-per-cent increase in the rental rate. During the third quarter of 2017, FFO was impacted by approximately 1.8 cents per unit (approximately 11 per cent of the payout ratio) as the June 30, 2017, equity offering proceeds are not expected to be fully invested until midway through the fourth quarter of 2017.