RE:RE:Q3 Results
mickeymouse wrote: Just read through the CIBC analyst report - couple of sentences were significant:
"Distributable cash flow for this quarter included a deduction for a principal payment (0.4 million) on the AM term loan as DIV sought to avoid breaching covenants." "absent the principal payment inclusion, distributable cash was 2% above our estimate"
In the tables provided in the summary the following numbers are included for DCPS and Payout ratio on DCPS:
2022 - DCPS = .26 Payout ratio on DCPS = 86.8
2023 - DCPS = .26 Payout ratio on DCPS = 92.1
2024 - DCPS = .28 Payout ratio on DCPS = 89.3
2025 - DCPS = .30. Payout ratio on DCPS = 85.0
So looking ahead this analyst believes the payout ratio will drop - the dividend is projected to be .25 in both 2024 andd 2025.
I would agree with the final line, I think the 24.5 cents is a temporary measure in that once the debt for the purchase is paid back in a quarter or 2 they likely add the other half cent to the payout. (Seemed to me to be kind of a, 'here take this, so your content with us using debt' type maneuver, which I'm more than pleased with)
The Payout ratio will lower as we see the transaction income hit our books and also I'm pretty positive one of our holdings increases it's income around this time every year, either October or November...
I don't fully understand the convoluted lines you pointed out. Are they saying that some of the distributable income does not show up as cash on the record because it was used to pay a portion of a loan, so the number is temporarily, artificially lower than we anticipated seeing?