This increases the risk of the company cutting its dividends in the future. Interest coverage ratio 1 2 2.59x 2.52x WA units 48,615 42,208 FFO per WA unit 1 2 $ 0.26 $ 0.26 FFO payout ratio 1 2 83.4 % 81.8 % AFFO per WA unit 1 2 $ 0.21 $ 0.21 AFFO payout ratio … PLZ.UN Payout Ratio: N/A (Trailing 12 Months of Earnings) 133.31% (Based on This Year's Estimates) 305.60% (Based on Cash Flow) REIT dividend/distribution yields. AFFO and AFFO payout ratio: Adjusted funds from operations (“AFFO”) was $43.2 million or $0.59 per unit for the year ended December 31, 2020. At the end of 2018 Q3, the average equity REIT had a debt ratio of 32.3%, meaning that assets outvalued debt by about 3:1, according to NAREIT. What’s the Cash Payout Ratio, the Distributable Cash Flow Payout Ratio (DCF), the FFO/AFFO Payout Ratio and when to use them. Thus, the company’s earnings are not sufficient to sustain the annual dividend paid to shareholders. REIT Rule No. In equity research, the payout ratio is the percentage of net income that a company pays out as dividends. Dividend Payout Ratio Definition. Real estate investment trusts (REITs), master limited partnership (MLPs) and capital intensive companies, including leasing and shipping companies, may have high-dividend payouts in relation to their net income. The payout ratio is the dividends paid to shareholders as compared to their net income. 75.8%. The REIT's leverage ratio including subscription receipt funds in escrow would be 49.4%. The dividend payout ratio is the percentage of a company’s profit that is paid out as dividends to shareholders. 58.9%. In some cases, companies may have a payout ratio above 100%. The formula to calculate the dividend payout ratio is very simple. Ideally, it would be flat or trending down over time. Debt to Equity Ratio (D/E) The debt-to-equity ratio is defined as: Debt-to-Equity Ratio = Long-Term Debt / Unitholders’ Equity. Alternatively, search for “dividend payout ratio” in the report. Total available liquidity was $158.9 million as at March 31, 2021. The distributable cash flow payout ratio gives you a very clear picture of the ability of the company to pay. 81.8% . I usually prefer to see a REIT whose payout ratio is below 90%. With the help of S&P Global’s non-traded REIT Database, I ran a MFFO payout ratio analysis using all non-traded REITs that report MFFO. While Minto is a relatively new REIT on the stock market (IPO was in July 2018), the REIT has proven it can effectively operate through the current pandemic. For comparison, the average across US companies is around 30% payout. REIT dividend/distribution payout frequency. Subscription receipt funds in escrow have been removed from total assets to calculate the leverage ratio for the second quarter of 2021. While REIT revenues are typically stable, I want to have some margin of safety in the form of a lower FFO Payout Ratio. The first REIT to be listed in the New York Stock Exchange was Continental Mortgage Investors in 1965. Look for Net Income under Income Statement. The dividend payout ratio is the percentage of a company’s profit that is paid out as dividends to shareholders. There are several formulas for calculating DPR: 1. The AFFO payout ratio was 67.6% for the full year 2020. This is because REITs must pay out most of their income. A high payout ratio … Carey additional flexibility to continue hiking dividends. The payout ratio is calculated by taking a REIT’s yearly dividend rate and dividing it by the estimated P/AFFO per share. Store Capital currently pays a dividend of $1.40 a share. 61.9 % 60.4 % (1) In accordance with IFRIC 21, the REIT recognizes property tax liability and expense on its existing U.S. properties as at January 1 of each year, rather than progressively, i.e. (2) … The general calculation involves adding depreciation back to net income and subtracting the gains on the sales of depreciable property. AFFO and AFFO payout ratio: Adjusted funds from operations (“AFFO”) was $9.2 million … So an MLP that pays out 80% of DCF would report that result as a 1.25 times distribution coverage ratio. FFO payout ratio 2. This is because although paid in Q3, the dividend value is … 1875 | Street, NW Suite 500 Washington, D.C. 20006. REITNotes™ calculates the payout ratio by dividing the dividend value paid during the current quarter by the FFO declared in the previous Quarter. FFO payout ratio 1 2 . 95% - 150% Next year, due to lower projected FFO, the payout ratio is predicted to be 83%. Core-FFO payout ratio 2. Here's a primer on REIT profit metrics, but for the time being, just know that if a REIT's payout ratio is higher than 100%, that isn't necessarily bad. The distributable cash flow payout ratio gives you a very clear picture of the ability of the company to pay. To evaluate the dividend safety of a REIT, I add up per-share FFO on my own, then use that to calculate price-to-FFO (valuation) and FFO payout ratio (which determines how safe the dividend is). The REIT with the lowest yield is ParkwayLife REIT at 3.8%. It helps assess the sustainability of a REIT’s dividend. But if this percentage is too close to (or higher than) 100%, a dividend cut could be on the horizon. A range of 0% to 35% is considered a good payout. A payout in that range is usually observed when a company just initiates a dividend. Typical characteristics of companies in this range are “value” stocks. Summary of Q1 2021 Results. Some REITs, however, will distribute even greater portions of their earnings in which payout ratios climb to well over 100%. FFO payout ratio 1 2. So a simple example (from a made up company) may look something like this –. Nevertheless, the formula to calculate the dividend payout ratio is as follows: Dividend Payout Ratio = Dividends paid/net income In depth view into Whitestone REIT Dividend Payout Ratio explanation, calculation, historical data and more Some types of stocks will have a higher payout ratio, sometimes even exceeding the net income per share. Ratio of Fixed to Variable Rate Debt: REITs with substantial variable rate debt, and thus carry substantial interest rate risk, are penalized. A payout ratio 20% means for every dollar of net income, 20% is being paid to shareholders in the form of dividends. Payout ratio is the percentage of earnings or cash flow (I use cash flow) that a company pays in dividends. For example, if a company earns one million in profit and pays $500,000 as dividends, then its dividend payout ratio is 50%. Suddenly, the yield and the dividend growth rate both make sense. MLPs use a coverage ratio. To calculate the dividend payout ratio, all you need to do is divide the dividends paid by the net income. So an MLP that pays out 80% of DCF would report that result as a 1.25 times distribution coverage ratio. Method 3 (2) … 14.9% . A$0.89. 81.8% . Its annual yield stands at 2.5% and it has a conservative dividend payout ratio of 25% which grants enough room for future growth. A REIT will report the percentage of FFO that is paid out as dividends. EPS Payout Ratio: 216% FCF Payout Ratio: -125% Instead of dividing stock price by earnings-per-share, we dividend REIT unit price by FFO-per-share. Then use that to calculate your price-to-FFO or payout ratio. The best example could be Enbridge (ENB), which currently has ridiculous payout and cash payout ratios (around 300%). Not surprisingly, the price performance of these REITs was stellar. A comprehensive list of metrics and a payout ratio calculated based on the company’s FFO. A REIT will report the percentage of FFO that is paid out as dividends. By calculating a REIT’s dividend payout ratio, discussed next, investors can assess how secure the dividend is, at least in the near term. Summary of Q1 2021 Results. AFFO 1 2 $ 10,398 $ 9,046 . AFFO payout ratio, calculated by taking a REIT's current annual dividend rate and dividing it by its projected AFFO per share, is a useful metric for analyzing a REIT's ability to cover its dividend payments. Well, the IRS requires REITs to distribute at least 90% of their taxable income. One more good thing is the dividend can go up in the future. For Rita's Rugs, the dividend payout ratio can be found by dividing 4 by 8, which is 0.50 (or 50%). E.g., we divide the dividend value paid in Q3 by the FFO reported in Q2. Add to watchlist. So, while a very high dividend may be attractive in the short-term, it may not last in the long-term. Suddenly, the yield and the dividend growth rate both make sense. Is it true that a payout ratio over 100% is not good. 65.3%. The core FFO payout ratio was 58.8% for the full year 2020. ratably throughout the year. This looks at how much of the company’s FFO is being paid to shareholders in dividends. 1.6% . The company expects the payout ratio to glide to an even safer 60-70% level as aFFO grows over the next few years. You will recall that, in order to obtain the tax benefits that come with REIT classification, the entity must pay out 90% of its taxable income as dividends. The AFFO payout ratio was 79.2% for the first quarter. earnings per share (from previous year) = $4.00. Instead, REIT investors look at FFO per share (Funds from Operations per share) and use that as a replacement for the earnings per share to calculate the company's payout ratio. Dividend Coverage: With its high payout ratio (267.6%), DDMPR's dividend payments are not well covered by earnings. Last updated: 07/13/2021. Interest coverage ratio 1 2 2.59x 2.52x WA units 48,615 42,208 FFO per WA unit 1 2 $ 0.26 $ 0.26 FFO payout ratio 1 2 83.4 % 81.8 % AFFO per WA unit 1 2 $ 0.21 $ 0.21 AFFO payout ratio 1 2 100.6 % 100.5 % (1) Includes the REIT's share of its joint venture investment. The core FFO payout ratio was 58.8% for the full year 2020. 19 REITs pay distributions on a semi-annual basis while 21 REITs pay distributions on a quarterly basis. 20 Dividend Stocks to Fund 20 Years of Retirement 2 of 11 FFO payout ratio 1 2. If a company generates $50B cash flow from operations and pays $10B in dividends, it has a dividend coverage ratio of 5x. AFFO and AFFO payout ratio: Adjusted funds from operations (“AFFO”) was $9.2 million or $0.13 per unit for the quarter ended March 31, 2021. There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0. Three months ended March 31, (1) Refer to “Non-IFRS Measures” section below. Find your company's dividend payout ratio by dividing the dividends per share by the earnings per share. Interest coverage ratio 1 2 2.59x 2.52x WA units 48,615 42,208 FFO per WA unit 1 2 $ 0.26 $ 0.26 FFO payout ratio 1 2 83.4 % 81.8 % AFFO per WA unit 1 2 $ 0.21 $ 0.21 AFFO payout ratio 1 2 100.6 % 100.5 % (1) Includes the REIT's share of its joint venture investment. The Securities and Exchange Commission (SEC) has set out the guidelines for the 90% rule for REITs: Slate Grocery REIT pays an annual dividend of C$0.86 per share, with a dividend yield of 6.59%. 2. Subscription receipt funds in escrow have been removed from total assets to calculate the leverage ratio for the second quarter of 2021. What most people are missing is why is … I’ll discuss three high-paying REITs that the machines get wrong, but first, let’s do … (2) Refer to "Non-IFRS Measures" section above. FFO is a better metric for how much a REIT is making. Calculate Dividend Payout Ratio by taking Total Dividends over Net Profit. It helps evaluate the REIT’s operations cash flow after taking into account the capital expenditures and other routine maintenance costs. However, it isn’t entirely necessary to know how to calculate the ratio, because many sites like morningstar.ca will calculate it for you. AFFO measures a REIT's cash flow from operations after accounting for maintenance costs and straight-line rent adjustments. COVID-19 Update. The payout ratio for a REIT is based on its FFO per share. The REIT's leverage ratio including subscription receipt funds in … I further refined my universe to only include those non-traded REITs that have at least two full years of operations as of the end of the 2 nd quarter 2017. Dividend Payout Ratio = (Annual Dividend per Share / Earnings per Share) * 100. Moody’s rating considers a REIT investment grade with an “Aa” rating if the REIT’s FFO payout ratio is below 50%. 14.9%. Dividend Summary. 54.4 % 53.7 % AFFO payout ratio 2. For a regular corporation, I want to see payout ratios below 75%, but REITs are different. The average yield for all REITs is 6.2%. (3) Adjusting to exclude the impact of the $169.0 million debt refinancing in the first quarter of 2021, FFO per unit and FFO payout ratio would … The dividend payout ratio can also go above 100%. 57.3 % 56.2 % Core-FFO payout ratio 2. However, its DCF payout ratio is around 65%. For example, an 80% payout ratio means the dividend rate will pay 80% of the FFO as dividends to share owners. Sort the REITs based on the Chowder Score (Yield and Dividend Growth) Sort the REITs by Dividend Increases (Consistency in dividend increases is good) Get all the details you need to make an investment decision with the Dividend Snapshot Canadian REIT List. (2) Includes the REIT's share of its equity accounted property investment. 70.1%. If a company’s payout ratio tops 100%, it sooner or later may be forced to cut or suspend the payments. In other words, the company paid out half of its earnings in the form of dividends to its investors in the past year. How to Calculate a Dividend Payout Ratio. WSR Dividend Payout Ratio as of today (July 06, 2021) is 3.56. The previous Tritax Big Box Reit Plc dividend was 1.6p and it went ex 2 months ago and it was paid 2 months ago. A 100%+ dividend payout ratio indicates that the company is paying out more than the company is earning in the current year. Apple Hospitality REIT's dividend payout ratio for the months ended in Mar. A payout ratio above 100% behooves an investor to consider whether a company is simply enduring a particularly challenging period, a seasonal lull that may occur each year or if it is starting a long-term decline. Interest coverage ratio 1 2 2.59x 2.52x WA units 48,615 42,208 FFO per WA unit 1 2 $ 0.26 $ 0.26 FFO payout ratio 1 2 83.4 % 81.8 % AFFO per WA unit 1 2 $ 0.21 $ 0.21 AFFO payout ratio 1 2 100.6 % 100.5 % (1) Includes the REIT’s share of its joint venture investment. Dividend Payout Ratio FFO payout ratios indicate the relative ability of a REIT to meet its dividend obligation, in that, if the payout ratio is less than 1.0, the dividend is reasonably secure. What does a negative payout ratio means. The dividend payout ratio is the portion of a company’s earnings that is paid to investors in the form of dividends during a given time period, usually a year. 83.4% . For the four quarters ended July 31, FFO totaled $28.9 million or $1.16 per Class A common share while the dividend payout was 97 cents a share, which leaves a back-of-the-envelope payout ratio … 360 Capital Group Limited. 79.2%. Payout Ratio = $1.40 / $1.92 Payout Ratio = 0.74 or 74% payout from FFO. 81.8%. AFFO payout ratio 2. Interestingly, only two of the 14 REITs on KBW's honor roll had a payout ratio of more than 90% of AFFO in 2011. (2) Refer to “Non-IFRS Measures” section above. Detailed price information for Slate Grocery REIT (SGR-UN-T) from The Globe and Mail including charting and trades. What is a good payout ratio? 360 Capital Group Limited. For more details, see the example in the next section. Certain industries, such as the REIT industry, are required by law to maintain a high payout ratio. AFFO and AFFO payout ratio: Adjusted funds from operations (“AFFO”) was $43.2 million or $0.59 per unit for the year ended December 31, 2020. However, over the long term, a payout ratio of above 100% is unsustainable. Dividend Payout Ratio Formula. Accordingly, we used the FFO payout ratio in our search for reliable REITs. The payout ratio, also known as the dividend payout ratio, shows the percentage of a company's earnings paid out as dividends to shareholders. A low payout ratio can signal that a company is reinvesting the bulk of its earnings into expanding operations. (4) Subscription receipt funds in escrow have been removed from total assets to calculate the leverage ratio for the second quarter of 2021. 83.4%. Future Payout to Shareholders Future Dividend Coverage : DDMPR's dividends in 3 years are forecast to be covered by earnings (93.7% payout ratio). The dividend payout ratio can also go above 100%. This resulted in a population of 39 non-traded REITs. The REIT’s leverage ratio including subscription receipt funds in escrow would be 49.4%. Be sure you’re comparing the dividend to FFO, not to a REIT’s net income. Subscription receipt funds in escrow have been removed from total assets to calculate the leverage ratio for the second quarter of 2021. The core FFO payout ratio was 58.8% for the full year 2020. As you can see, if you look at the EPS or FCF payout ratio you would think that Realty Income’s dividend is incredibly unsafe and headed for an imminent cut. The way to calculate the payout ratio is by dividing a company’s total dividends by its net income. The REIT has a sound track record of delivering profitable growth and growing monthly cash distributions per unit by 93% since 1997. Real estate investment trusts (REITs) are structured, for tax reasons, to distribute most of their cash to unit holders. Subscription receipt funds in escrow have been removed from total assets to calculate the leverage ratio for the second quarter of 2021. The AFFO payout ratio was 67.6% for the full year 2020. For REITs, I use FFO Payout Ratio, which is calculated by dividing the dividend payment over the FFO/share. SGR.UN's next monthly dividend payment will be made to shareholders of record on Monday, August 16. 1 In accordance with IFRIC 21, the REIT recognizes property tax liability and expense on its existing U.S. properties as at January 1 of each year, rather than progressively, i.e. For more details, see the example in the next section. The calculation for the price-to-FFO ratio is very similar to the calculation of the price-to-earnings ratio. ratably throughout the year. Investment Thesis. The payout ratio is a financial metric showing the proportion of earnings a company pays its shareholders in the form of dividends, expressed as a percentage of the company's total earnings. On some occasions, the payout ratio refers to the dividends paid out as a percentage of a company's cash flow. 1-202-739-9400 1-800-3-NAREIT 1-202-739-9401 (fax) The payout ratio is useful for evaluating other dividend-paying stocks; find out more about it in The Truth About Dividend Payout Ratio. Instead of using EPS to calculate a REIT’s dividend payout ratio, simply replace EPS with FFO per share. 14.9% . FFO payout ratio 2. At the end of 2018 Q3, the average REIT had a D/E ratio of 90%. Search for “dividends” or “dividends declared” in a company’s annual report. First, be sure you’re using FFO for the payout ratio -- not net income or earnings per share. The Dividend Payout Ratio Calculator is used to calculate the dividend payout ratio. Slate Grocery REIT pays out 39.60% of its earnings out as a dividend. REITs tend to have higher-than-average payout ratios, and 70–80% of FFO is common. Very High: A payout ratio between 75% to 95% is deemed to be rather high, implying that a company declares most of the money it makes as dividends. Explaining The 90% REIT Payout Requirement. 83.4% . The AFFO payout ratio was 79.2% for the first quarter. Variability by industry The REIT's leverage ratio including subscription receipt funds in escrow would be 49.4%. Subscription receipt funds in escrow have been removed from total assets to calculate the leverage ratio for the second quarter of 2021. MLPs use a coverage ratio. PR=Total dividends\Net income The general businesses have less than 100% as payout ratio. The best example could be Enbridge (ENB), which currently has ridiculous payout and cash payout ratios (around 300%). In distributable cash flow payout ratio, calculation is the dividend per share divided by the distributable cash flow per share. Whilst normally such a high yield might be a warning sign, in IRM's case they can comfortably cover the dividend through the cash flows generated. Many financial advisors counsel that the most ideal payout ratio is between 40 and 60%. This allows the investor to collect a good periodic income from dividends, if their holdings are substantial. The dividend coverage ratio is a financial indicator that tells you how many times a company's operating cash flow can cover the dividend. You can find the net income using the company’s income statements. Plugging those values into our calculation, we’d get the following results –. (4) Subscription receipt funds in escrow have been removed from total assets to calculate the leverage ratio for the second quarter of 2021. CAPREIT most recently raised its distributions by 3.8%. annual dividend per share (from previous year) = $2.00. The REIT’s strong credit tenancies and conservative payout ratio supported an industry leading average distribution yield of 9.3% during the first quarter of 2021. What are the pros and cons of each payout ratio. AFFO payout ratio is also low for a REIT, at 85%, giving W.P. Three months ended March 31, On aFFO basis, the dividend is covered with a 82% payout ratio. AFFO 1 2 $ 10,398 $ 9,046 . The AFFO payout ratio was 67.6% for the full year 2020. Instead of dividing stock price by earnings-per-share, we dividend REIT unit price by FFO-per-share. 1.6% . The core FFO payout ratio was 70.1% for the first quarter. As with any company that pays a dividend, we can easily assess the payout ratio of a REIT by dividing the dividends per share by the FFO by share, and voila, payout ratio. DPR = 1 – Retention ratio (the retention ratio, which measures the percentage of net income that is kept by the company as retained earnings, is the opposite, or inverse, of the dividend payout ratio… The core FFO payout ratio was 70.1% for the first quarter. The next Tritax Big Box Reit Plc dividend is expected to go ex in 17 days and to be paid in 1 month. The Dividend Payout Ratio can be calculated easily in just 2 steps. Interest coverage ratio 1 2 2.59x 2.52x WA units 48,615 42,208 FFO per WA unit 1 2 $ 0.26 $ 0.26 FFO payout ratio 1 2 83.4 % 81.8 % AFFO per WA unit 1 2 $ 0.21 $ 0.21 AFFO payout ratio 1 2 100.6 % 100.5 % (1) Includes the REIT's share of its joint venture investment. Investors looking at regular income prefer stocks with high payout ratios. AFFO and AFFO payout ratio: Adjusted funds from operations (“AFFO”) was $9.2 million or $0.13 per unit for the quarter ended March 31, 2021. A REIT’s payout ratio can be compared to its own historical average (the lower the current ratio compared to the historical average, the better) or to other REITs in its sector (the lower the better). The dividend remains safe with a AFFO payout ratio of 72% for the quarter. AFFO 1 2 $ 10,398 $ 9,046. The core FFO payout ratio was 70.1% for the first quarter. In the long run, this is not a sustainable situation for a company. For example, if a company earns one million in profit and pays $500,000 as dividends, then its dividend payout ratio is 50%. The most basic way to calculate a dividend payout ratio is to add up a company’s paid dividends per share over its last four quarters and divide that amount by the company’s total diluted earnings per share reported over that same period. 360 Capital Group is an ASX-listed, investment and funds management group, focused on strategic and active investment management of alternative assets. REITs are required by law to distribute more than 90% of their earnings in the form of dividends, meaning all REITs should have a payout ratio of more than 90%. 1.6%. Second, while most investors look for payout ratios of 40–50% for typical dividend stocks, REIT payout ratios are often much higher. AFFO and AFFO payout ratio: Adjusted funds from operations (“AFFO”) was $43.2 million or $0.59 per unit for the year ended December 31, 2020. For example, an 80% payout ratio means the dividend rate will pay 80% of the FFO as dividends to share owners. However, its DCF payout ratio is around 65%. DPR = Total dividends / Net income. TGP: AU. FFO payout ratio 1 2. 56.0%. If the payout ratio is low as 30% or even less than 50%, that means, the company is trying to grow their business. The dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends, calculated by dividing the company’s dividend by the earnings per share. 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Be calculated easily in just 2 steps DCF payout ratio, sometimes even exceeding the net per... To shareholders of record on Monday, August 16 useful for evaluating other dividend-paying stocks find. 2 months ago and it was paid 2 months ago rate and dividing it by estimated. And 89 % of its earnings out as dividends 's dividend payout ratio can also above. A low payout ratio = 0.74 or 74 % payout ratio over %. See a REIT ’ s net income dividends declared ” in the Truth about dividend ratio. Indicates that the company ’ s FFO is being paid to shareholders of record on Monday, August 16 payout. And funds management Group, focused on strategic and active investment management alternative..., I want to see a REIT ’ s dividend payout ratio of! Not to a REIT ’ s income statements of its earnings out as a dividend Big Box REIT Plc was... Of 6.59 % to FFO, not to a REIT ’ s leverage including. Removed from total assets to calculate the payout ratio, simply replace EPS with FFO per share reliable.. Than 100 % is considered a good periodic income from dividends, if their holdings substantial. Some occasions, the price performance of these REITs was stellar is 90... Suspend the payments REIT industry, are required by law to maintain a high payout,... D.C. 20006 earnings out as a dividend of C $ 0.86 per share ) Includes REIT... Are required by law to maintain a high payout ratio, calculation is the dividend growth rate both make.! Straight-Line rent adjustments, REIT dividend/distribution payout frequency the following results – or trending down over.. Sustainability of a company just initiates a dividend cut could be Enbridge ( ENB ), which currently has payout... Distributions by 3.8 % = $ 1.40 / $ 1.92 payout ratio, all you need do. What are the pros and cons of each payout ratio Continental Mortgage in... Share divided by the earnings per share, with a dividend of C $ 0.86 per share with! Term, a dividend cut could be on the company cutting its dividends in previous! Because although paid in Q3 by the distributable cash flow after taking account! And the dividend can go up in the current year giving W.P as: debt-to-equity is! That result as a percentage of FFO is a better metric for how much a REIT ’ s total over! Some cases, companies may have a higher payout ratio is around 30 % payout from.... 72 % for the second quarter of 2021 looking at regular income prefer stocks with high payout ratio, you... Dividend yield of 6.59 % Includes the REIT ’ s annual report distribute at least 90 of... Excluding specials ), and 70–80 % of FFO is a better metric for how much a is! Covered by earnings management of alternative assets REIT payout Requirement stable, I want to have margin! Paid during the current year: 1 paid by the distributable cash flow payout ratio by dividing company! May not last in the short-term, it would be 49.4 %: with its high payout ratio is low... Section above even greater portions of their earnings in which payout ratios, the! The payments of using EPS to calculate the leverage ratio for the quarter! Company 's cash flow payout ratio is very simple paid out as dividends out 80 of... Way to calculate a REIT ’ s net income that a payout ratio was 58.8 % the... Was 58.8 % for typical dividend stocks, REIT dividend/distribution payout frequency form of a is! Reit whose payout ratio means the dividend cover is approximately 1.0 95 % - 150 % ( )!

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