Payout Ratio is 42% of FFO...Dividend is Sustainablefindace, you said, "to me, it feels like whistling past the graveyard. Again. Payout ratio 125% cannot persist if the notion is a "safe" dividend. Sorry to say, I'm long. "
Sure, if you want to look at EPS the payout ratio is 127%, but that's not how it's calculated.
You need to look at Free Funds from Operations which were $0.78 per share for the 3Q.
All companies use FFO or AFFO to calculate Payout Ratios. I was invested in Sienna Senior Living. Their EPS don't cover the Dividend Payout Ratio, but when you use AFFO, Adjusted Funds From Operations, the P/O ratio was 91.3% for 3Q.
Peyto's dividend is more than sustainable and safe, with a 42% P/O ratio to FFO.