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

Morguard hidden agenda

[robbie88]

Compared with Q3, revenue, operating income, FFO, AFFO were up significant. Payout ratio is 46.2%. MRT.UN has over $140M liquidity plus tons upward refinance available. 
Total cash distribution was less than $1M per month. By cutting half dividend, MRT.UN can save half million or $6M per year. There is no justification to cut the dividend by half. 
Without cutting the dividend, MRT.Un shall breakout tomorrow.
Obviously, Morguard wants to take MRT.UN private and wants to reduce the price tag.

[MTLfinecity]

Nah you cannot just look at cash dividends and the cash savings the cut provides. the dilution of the business is being reduced by half as well. . 

[Shirtlessnomore]

If you do the math you will realize this move is counterproductive to your theory, they could accumulate more dripping at 4 cents a share, the drop in price wont make up for that. however I do agree that tomorrow would have been different than it's going to be because of the dividend slash.

[Capharnaum]

You could argue that since the share price is low and they don't want to kill the drip, the reduction of the dividend will limit the issuance of new shares (dilution at a low share price) and will make the issuer bid more effective.  Look at it this way... the drip had the potential to issue 8% more shares this year while the recent issuer bid could allow for the purchase of 5% of the