BTB Real Estate Investment Trust T.BTB.UN

payout ratio up 10% to 87.4 on AFFO

[perplexed01]

anyone else alarmed by the rising payout ratio? " any further increase (rising interest rates will increase costs) and the current reduced dividend will no longer be sustainable. waiting to see what analysts say - both professional and armchair.

[TimeBuilder]

We will also wait patiently for more details to come forward from any source .... Thanks for posting your concerns..Regards TB " Time Will Tell "

[dileas48s]

I suspect near term interest hikes will have limited impact to their mortgage interest. In Q3 they reduced debt slightly but of course made the acquisition since then. The payout is high and there is certainly risk of a dividend cut, but as the COVID situation improves other catalysts may positively make an impact.

[TimeBuilder]

            dileas48s              well said good thoughts   Thank you  

[canadian]

They have made an acquisition after q3 which will decrease the payout ratio. Also they are signing up new leases in q4 which fell vacant last year. The revenue has gone up. The ratio fell because of issuing new shares. You seem to be a short seller.

[divime1]

As part of their structure, they must pay 90% of income back to investors. https://www.investopedia.com/terms/r/reit.asp Looking at TNT.un payout . Sept 30 / 21  105 % Sept 30 /20  104 % TNT.un has never cut their dividend in the last 8 years . https://truenorthreit.com/investors/distributions/

[thomas35]

It is taxable income not income as you stated. Do you know what their taxable income is per unit? Probably zero! AFFO payout ratio is not affected by taxable income.

[perplexed01]

i dont know who would short a reit paying such a large distribution as the shorter would have to pay the short divy.  FYI this happens to be my largest LONG holding - longtime long though i did sell off 90% of my position pre-covid when the payout hit 100%.  i bought back even more than my original position average 30% discount when the price crashed and the divy was cut.  my posts

[canadian]

I dont know if you have seen what I said  "They have made an acquisition after q3 which will decrease the payout ratio. Also they are signing up new leases in q4 which fell vacant last year. The revenue has gone up. The ratio fell because of issuing new shares."

[Scotch12]

Canadian your point is the issue at hand.  Mgt keeps issuing shares and raising debt to buy more properties.   The goal for most share-holders is not that they increase the size of the assets under mgt but increase the payout.   Yes, they have consistently improved the quality of properties which is important.  The market will reward the share price when they have a

[apollojetic]

Very common for the payout ratio to climb after an isue of shares and aquisition, as has been nicely articulated. We may see it higher for the next few quarters, but it's not an indication of instability or a possible dividend reduction. The properties are hgh quality. The market is more concerned with interest rates going higher and quicker than thought before. The positive side of that