CMCT REIT falls after slashing dividend
16/09/2024 18:50
** Shares of real estate investment trust CMCT CMCT.O drop
~4% to $1.91 after halving quarterly dividend
** Co to pay dividend of $0.04/shr vs prior payout of
$0.085/shr
** CMCT also shelves planned asset sale, says will borrow
against the assets instead of via a refinancing arrangement
** Received fair offers for the assets but the would-be
buyer was unable to close the deal, CMCT says
** Proceeds from the refinancing will be used to repay debt
and invest in premier multifamily properties - CMCT
** CMCT also plans to redeem some preferred shares to shore
up capital
** Preferred shares can be burdensome for a company since
they carry higher dividends
** YTD as of Friday, stock had lost ~46%
(Reporting by Niket Nishant in Bengaluru)
((Niket.Nishant@thomsonreuters.com))