RE:RE:*NEW* Investor Presentation borne2run wrote: Jimmy, go ahead and do the calculations.
- 8% cap rate
- long term fixed-rate debt at 4.64%
- sustaining maintenance capital
- refurbishment capital
- G & A expenses
What's left over for dividends?
Certainly not a 10% yield.
The yield is based on the price an investor buys a share at, not what it costs them to pay a distribution. Those who bought at $9 last year have a different yield than those who buy at $7+ today.
They pay out the same $ amount every month regardless of what the yield is. They report the payout ratio to be close to 100% for 2018, and the expected payout ratio for 2019 is 94% and their target is 85%.
As the share price rises the yield will go down, but that doesn't affect the payout ratio, that is based on the numbers cited above, cash flows.