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Urstadt Biddle Properties: A Dividend Cut, Now What

Published Tue, 30 Jun 2020 01:28:57 -0400 on Seeking Alpha

Seeking AlphaREITsUrstadt Biddle Properties: A Dividend Cut, Now WhatJun. 30, 2020 1:28 AM ET|| About: Urstadt Biddle Properties Inc. (UBA), Includes: UBPby: Gen AlphaGen Alpha Long only, value, Growth, growth at reasonable priceSummaryUrstadt Biddle operates a high quality portfolio in desirable locations in the Northeast.
The company was forced to cut the dividend due to the rent collection rate being far below the normal level.
In this article, I model what the new payout ratio would be, and make projections on what it would take for the prior dividend to be reinstated.
Evaluating a company’s dividend track record is one of the key factors that many dividend investors look at when choosing where to invest their hard earned money. Companies that have a long track record of paying increasing dividends are generally favored by income investors for management’s commitment to rewarding shareholders.
However, as the Great Financial Crisis and the current recession has shown us, no company can be thought of as being completely immune to a dividend cut. Urstadt Biddle Properties (UBA) (UBP) is one such stock that had an impressive 20+ year track record of increasing dividends before being forced to cut the dividend by 75% this month. In this article, I intend to evaluate the expected payout ratio of the new dividend, and model the scenarios in which the dividend can return to its previous level, so let’s dig in!

(Source: REIT.com)
A Northeastern Operation During Troubled Times Urstadt Biddle is a shopping center REIT that is focused on the New York City metropolitan area. It has just over 80 properties, of which 74 are shopping centers and/or free-standing net-leased retail bank or restaurant properties. The remaining properties are small two-story suburban office buildings and a childcare center. Below is a snapshot of their property locations, which are in New York with 30 properties, Connecticut with 33 properties, and New Jersey with 19... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
URSTADT BIDDLE PROPERTIES 18.43   28.8 0.64 0.98 5.33


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