GREY:ALARF - Post by User
Comment by
mickeymouseon Jun 08, 2018 8:32pm
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Post# 28148857
RE:"Me Thinks" is up the first $1.00, so a minimum of $1.00 to
RE:"Me Thinks" is up the first $1.00, so a minimum of $1.00 to If there was a need to cut the distribution due to a lack of funds the management would do that. At this point they are maintaining the distribution with a payout ratio below 100%.
In their May investor presentation on page 13 they give a very clear summary of their expected cash flow for 2018. They had a payout ratio of about 90% prior to the Planet Fitness and Labstat redemptions. With the redemptions and the deployment this week they will have a payout ratio that is closer to 100% but still not at that point.
Every 20 million of capital deployment equates to .04 in distributable funds - the guidance in the last conference call was that they would have a record year for deployment which means they would exceed the 178 million deployed in 2015. Even if you cut that in half and they deploy 85 million that is .17 in additional funds that can be put into the dividend. That would bring the payout ratio below 90%.
In terms of CCom being a high risk investment their earnings to distibution coverage is shown as greater than 2x on page 12 of their May investor presentation.