On April 8, we discussed the coronavirus-related challenges facing Urstadt Biddle (UBA). Our primary concerns were the firm's small size (only 81 properties), concentrated operations in ground zero of the pandemic (New York), relatively high payout ratio entering the crisis (80% to 90%), and signs that numerous tenants (e.g. Staples) may skip their rent. More news has arrived over the past month, and it doesn't bode well for Urstadt Biddle's dividend safety profile. On May 11, New York City's Mayor Bill de Blasio said the city's lockdown will likely continue into June.  Urstadt Biddle's properties aren't located directly in downtown Manhattan, but most of them are within 50 to 75 miles away. Tenants could now be looking at extended lockdowns, making them even less [...]

Simon Property Group (SPG) reported earnings on May 11. Management disclosed few specifics, dodging questions about how much rent was collected in April and the status of its pending acquisition of Taubman. However, CEO David Simon did provide general expectations for the dividend. Based on what management knows today, it sounds like Simon expects by the end of June to reduce its dividend by up to 50% but will continue making its payments in cash (rather than stock). The Board will declare a second quarter dividend before the end of June, and that dividend will be paid in cash. We expect to pay out at least 100% of our taxable income in 2020 in cash. As a point of reference, there have [...]

Ventas (VTR) reported earnings on May 8 and opted not to comment on the dividend other than stating on the earnings call that a decision by the Board would be made in June: As you know, we declared and paid our last quarterly dividend in April. Because we normally pay our next dividend in July, our Board will consider the dividend in mid- to late June. As it always does, our responsible and experienced Board will make a decision using its good faith business judgment, taking into account all of the information available to it at that time. In a situation like the fast moving, rapidly changing global pandemic, we have the advantage of aggregating and analyzing the best and most current information [...]

Tanger (SKT) reported earnings today and suspended its quarterly dividend. The owner of outlet malls will pay the previously-scheduled dividend on May 15, but payouts will cease after that until further notice. By suspending the dividend, Tanger will save $35 million in cash per quarter to help preserve the firm's balance sheet and maintain financial flexibility. It's unclear when the dividend will be reinstated (and at what level). By law REITs must pay out 90% of their taxable income to shareholders, but it's too early say what profit Tanger will earn in the foreseeable future. On March 24, we downgraded Tanger's Dividend Safety Score to Very Unsafe as government-mandated shutdowns of non-essential stores looked to be the nail in the coffin for some of Tanger's tenants and the [...]