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CommonWealth REIT (CWH) declares $0.25/share quarterly dividend, 50% decrease from prior...

CommonWealth REIT (CWH) declares $0.25/share quarterly dividend, 50% decrease from prior dividend of $0.50. Forward yield 6.8%. For shareholders of record Oct 22. Payable Nov 21. Ex-div date Oct 18. Shares -3.4% AH. (PR)
Comments (6)
  • rjlehmann
    , contributor
    Comments (20) | Send Message
     
    I feel betrayed. I saw no need for a 50% reduction. This is a kick in the face to loyal shareholders...
    9 Oct 2012, 04:50 PM Reply Like
  • davidbdc
    , contributor
    Comments (3149) | Send Message
     
    Don't worry, those management bonusses are only going to be increased by 10% this year.........
    Its doubly unbelievable since all the spinoffs (which we supposedly still hold percentages of) ALL increased their dividends today!!!

     

    So all the companies spun off see their payouts increase.... but the original shareholders get screwed!
    9 Oct 2012, 06:38 PM Reply Like
  • lhwseeking
    , contributor
    Comments (2) | Send Message
     
    Given the history of events with the spin-offs, selling of more profitable properties etc., repurchase of preferred shares and may other actions that are contrary to the shareholder's interests and beneficial to management's interests, I believe it is time to involve the legal justice system, civil and otherwise.
    10 Oct 2012, 02:24 AM Reply Like
  • lhwseeking
    , contributor
    Comments (2) | Send Message
     
    I believe that CWH no longer owns any part of the spin off companies. The spin off companies are owned, in part, by management of CWH. The shares of the spin off companies which own many of the more favorable properties that CWH previously owned have increased in value since June of 2012, while the value of CWH has declined. It appears that CWH has been gutted, while the management fees for the properties have been increased. I believe it is time to consider legal action and request investigations..
    10 Oct 2012, 02:26 AM Reply Like
  • 4n7sjkl
    , contributor
    Comments (88) | Send Message
     
    I agree that drastic action has to be taken in order to protect the interests of the shareholders. But who is going to initiate it? Unless a big activist shareholder will step in, the chances of a change are practically non existent, since the external management company has no incentive to alter a very lucrative arrangement for them.
    By the way, my impression is that the spun off companies are partially owned by the parent company, to which dividends are being paid.
    10 Oct 2012, 12:29 PM Reply Like
  • davidbdc
    , contributor
    Comments (3149) | Send Message
     
    We do own some percentage of each spin-off (at least the last time I went through all the details sometime last year).

     

    Which makes the cut even WORSE. They are basically saying that the core holdings produce zero free cash flow for shareholders.
    11 Oct 2012, 11:34 AM Reply Like
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