The company said Wednesday morning that it has received an additional lender waiver and extension for reporting third-quarter 2014 and full-year 2014 financial statements, and that ARCP has agreed pursuant to the waiver and extension that it will not pay a dividend on its common stock until its financial statements have been delivered. Following delivery of its financial statements ARCP intends to review its dividend policy and pay a common stock dividend in line with its industry peers.
At its share price of around $12.30 before the October announcement, the dividend yield on the shares was about 8%. At Tuesday’s closing price of $8.33, the $1.00 dividend pays a yield of 10.90%.
The company said this morning that it has completed its portfolio review and that its board of directors “confirmed the composition of ARCP’s portfolio including its existing leases and the validity of tenant-generated cash flows.” American Realty has also agreed as part of the consent and waiver deal with its lenders to reduce the maximum amount of its credit facility to $3.6 billion. The company also will be required to maintain a $10.5 billion unencumbered asset pool as a permanent covenant in loan agreements.
Until the company delivers its 2013 and 2014 financial statements and related documents, neither it nor its operating partnership will pay any dividends or make any other restricted payment on common equity. Once the financial filings are completed, the company will reconsider reinstating its dividend.
American Realty’s stock traded down about 3.4% in Wednesday’s premarket session, at $9.05 in a 52-week range of $7.38 to $14.96.
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