Friday, January 30, 2009

Simon Property Next REIT To PIK Dividends

As we discussed previously, the trend of PIKing dividends continues, with Simon Property Group announcing earlier it would pay out its $0.90 quarterly dividend in the form of 10% cash and 90% in kind. The largest mall and shopping center operator is aggressively conserving cash in a scary commercial-mortgage backed environment. While the press release boasts the company's "strong balance sheet" and credit rating (A-/A3), we would not bet on the latter staying there too long: as we mused recently, S&P's seems hell bent on catching up for a 30 year drunken, lagging stupor, by downgrading pretty much anything and everything that moves. Sphere: Related Content
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