Mar. 11 at 10:00 PM
$FSP The
$0.01 quarterly dividend (is likely a requirement to REIT status - there are technicalities and it would be litigated, but this is “probative” ). One thing the elimination means is that the bag these assets are carried in does not really matter anymore.
Also it is a protective action against shareholder lawsuits … If FSP paid
$0.01 while the stock was crashing (which it is), a lawyer could argue the board was "misleading" investors into believing the company was stable enough to pay a distribution.
By cutting to zero, the board "cleans the slate." It removes the dividend as a legal hook for claims of "shareholder oppression" or "waste of corporate assets."
It’s a "batten down the hatches" move intended to make the company as boring and un-litigable as possible while they manage the decline.
The transaction volume for B class buildings is near zero. I know people might try to bicker here, but I am not going to argue.
