True North Commercial REIT T.TNT.UN

Distribution cut

[impega]

For those that aren't aware the distribution cut is to fund the NCIB not to compile cash for a privatized company.

[SIGG1]

they are spending about 25% of the cash of the distribution cut toward the NCIB...  Another lie 

[impega]

Sigg if you don't mind can you show how you calculated 25% of the distribution cut is going to NCIB.

[Holden22]

The last full year of regular dividends was 2022 and $48.6 m was paid in common dividends. Under the 2023 NCIB $10.5 m was spent on share buy backs. The Q2 2024 figures suggest the YTD share purchases under the 2024 NCIB was $3.2 m. $13.7 m/$48.6 m = 29%, note these NCIB purchases span 14 months, the 2022 dividend payments span 12 months. 

[pierrelebel]

Holden22 wrote "... regular dividends was 2022 and $48.6 m was paid in common dividends...." And that is the source of the problem.. Operating income for 2022 was $16.23 million - that is $32 million less than distributed to unitholders. It explains why the distribution had to be cut. Eventually the REIT sector will improve, so will TNT and its ability to restore a monthly

[Holden22]

no argument with you on the math. you are right, it was required. I can see the long term value they are building but keep in mind this is a reit, a vehicle made for stable income distribution, as articulated by the reit consistently since they started back in 2012. They have the ability to pay a small dividend comfortably and they are choosing not to do so. It is safe to say the market

[wheeloffortune]

To correct you, Operating Income in 2022 was $80.5m (not $16.5m) and NET Income was $16.5m.  Big difference.  But, here's something really positive about Net Income for TNT.  According to Yahoo Finance, NET INCOME TTM (August 6, 2024) = $57.3m (WOW!!); DEC 31/23 = $-40,6M ; DEC 31/22 = $16.5m ; DEC 31/21 = $51m. in Dec 31/21, the stock traded at $42.61 and the net income n 2021

[matt2018]

Not following..... as per 2nd qtr report, YTD - 2024 total of 1,135,646 units were purchased for $10.4M. Thats just for the first 6 months of this year. Where do you get the $13.7M that span 14 months?

[Holden22]

I'm using the Koyfin platform and in the summarized quarterly cashflow statements it lists the following under the line item Repurchase of Common Stock: Q2 2023 - $0.3 m  Q3 2023 - $0.2 m Q4 2023 - $2.9 m Q1 2024 - $5.8 m  Q2 2024 - $4.7 m  Looks like $13.9 m all in across both NCIBs, hope this is helpful!

[matt2018]

thanks Holden, appreciate it. The buybacks only really seen serious buys last 3 qtrs. But they do seem like they have slowed down recently. Perhaps think about an SIB and take out 500k units in one shot. They have more than enough cash on hand to do this now. Total debt down appr $55M from last qtr, from proceeds of asst sales.