Hi there, as of right now the dividend looks to be coming in at around 64% of funds from operations. We view this as the more accurate benchmark in terms of REIT payout ratios.
The company is very cheap ,trading at only 7x its funds from operations and at a 40% discount to its net asset value. It is currently yielding 9% and if you're a yield seeker, you'd definitely be drawn into this company.
However, the company recently slashed the distribution during the pandemic and has never been able to bring it back up to former levels.
The company's debt situation is poor. Its FFO to interest ratio, which is a measure of the company's ability to pays its debt, is only 1.27x. This means that it generates about 1.27 times the money it needs to cover its short term debt payments. To put this into perspective, Foundational Stock Granite REITs FFO to interest ratio is 6.3.
The company also has one of the highest debt to equity ratios in all the REITs we track.
Overall, I'm not a fan of this company. The debt situation is not optimal. I'd maybe revisit it when it gets that under control. Which, at this point, could take years.