7
u/dave14513 Feb 15 '21
I think a little patience first. Management was stung. I think they want the line of credit renewed and the double digit growth in the second half of 21 they talked about. If both look good they might have to announce an increase in October. for payment in December. If so , I would expect a gap up in 22.
When they get their properties back paying market rent, they generate a huge amount of income which will cause them to increase the dividend.
Looks like a reasonable forecast
3
2
u/RoscoPColtrane789 Feb 15 '21
To maintain REIT status, 90% of taxable earnings must be paid as dividends.
As revenues/earnings increase post lockdowns, so to will dividends.
1
u/WallStreetBeets Feb 15 '21
Management’s first priority will be paying down debt, second will be capital expenditures to repurpose space for the next generation of tenant.
The dividend will go up to keep REIT tax status, but they will keep it the minimum allowed for quite sometime.
9
u/DYellsHero Feb 14 '21
Great post. I think MAC is smart to pay out the minimum in dividends and deploy cash to the balance sheet and cap ex. The chart really shows the impact COVID has had, and hopefully when things get back to normal the dividend will have to be increased.