TSX:REI.UN - Post by User
Comment by
hroark7on Nov 06, 2020 11:08am
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Post# 31851357
RE:RE:What do you spend your RioCan distribution on?
RE:RE:What do you spend your RioCan distribution on?Covidruinedme wrote:
I'm driping everything all the way to $20. Then I get a part time job max 3 days a week and day trade / chill / enjoy life. If that is riocan stays around and doesnt cut divvy for the rest of my life
Ed Sonshine is very serious about keeping the dividend because he knows a lot of Riocan shareholders depend on it. Even in the financial crisis in 2008 he convinced the board to not cut the dividend:
FP: Did you ever really think about cutting RioCan’s distribution? There was a period when people on Bay St. said you were paying out more than you were pulling in and it was not sustainable. Sonshine: They were right, we were over-distributing. Did I think about cutting it? Of course. Everybody was telling me to cut it including some members of my own board. It got brought into focus by the financial crisis. In 2009 I think we only earned $1.22 in funds from operations and we distributed $1.38. Take into account capital expenditures, the shortfall was more dramatic. I made a deal with the board because I knew a lot of shareholders relied on distributions. If it didn’t turn around in two years, we would look at it again. It would have been easy to cut the distribution or just give it to people in stock. I just felt a lot of people were relying on it. I felt we have this covenant with those people. We didn’t increase it for four years. Before that we had increased every year from the year we started, sometimes twice a year. Source: https://financialpost.com/financial-post-magazine/ceo-of-the-year-ed-sonshine-riocan