TSX:CSH.UN - Post by User
Comment by
Dibah42on Jun 14, 2020 11:07am
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Post# 31148146
RE:RE:RE:Too nice dividend
RE:RE:RE:Too nice dividend"There won't be a cut they are still getting paid by the residents aren't they? It's not like a retail Reit where they having trouble collecting rent... people that pay rent actually live in the facilities."
It'll become clearer when they announce their occupancy/vacancy rate.
While you may be correct that the LIVING are continuing to pay their rent, the corollary is equally true. I am not sure if the govt. is continuing to pay for empty beds under the rubric of some business support program.
And in a pandemic ambience it is unlikely that new inmates are checking-in in large numbers, whether in LTCs or in their other lavish homes. Vacant beds will remain vacant for a while.
As for the dividend, I remain agnostic. Of the three public co's CSH is probably the best situated. On the other hand there has been abundant public scrutiny and criticism re pinching pennies on services while paying rich dividends, cushy executive salaries and lavish board remunerations. It might be prudently politic to show a token of good faith.
I am reminded of the auto execs, during the financial pandemic of '08, arriving in their private jets to testify before Congress and getting ripped for it. I suspect Jagmeet's speech writers are chomping at their bits.