Morguard Real Estate Investment 5 25 convertible unsecured subordinated debentures T.MRT.DB.A

Based on FFO of last quarter

[canadian]

Based on FFO of last quarter, MRT can actually double it's dividend (almost 16% yield) for 95% payout. Does not make any sense to cut the dividend

[Shirtlessnomore]

It actually does make perfect sense if you think about it. At 2 cents a share they only have to give out 50% of what they were in drip shares.

[canadian]

Valid point. But why don't they suspend DRIP?

[saintpeeter]

Good point - if cutting the dividend today is the right decision to position the company for a better future then fine, it is the right finance decision - & thenit doesnt make sense to do a DRIP Do you know if they are doing share buybacks

[Shirtlessnomore]

I would only assume the least they could do that would make the most sense is for every 2 cents of drip to MRC and elsewhere there would be 2 cents of buyback power to compensate leaving a zero impact on the float. In fact the extra 2 cents of cash payout could be used a number of ways including more buyback power

[canadian]

May be they are using the additional savings  from cutting distributions to redeem higher interest convertible debentures maturing this year?