Vornado Realty Trust, a publicly traded real estate investment trust (REIT), has announced that it will delay its common-share dividends until the end of 2023. The company had previously offered a payout ratio of 10% to its shareholders. The news has caused concern among investors, as dividends are a significant source of income for many investors.
Vornado Realty Trust’s decision to delay its common-share dividends is part of the company’s larger strategy to improve its financial position and maximize value for its shareholders. The company has stated that it will use the funds that would have been used for dividends to invest in its properties, pay down debt, and pursue growth opportunities.
According to the company, the decision to postpone dividends was not an easy one to make. However, the company believes that it is the best course of action to ensure the long-term success of the company and to provide value to its shareholders. The company has also stated that it plans to reinstate its dividend payments at the end of 2023.
Investors have been concerned about the impact of the dividend delay on the company’s stock price. However, Vornado Realty Trust has stated that it believes the delay will have a minimal impact on the company’s stock price and that it remains committed to delivering long-term value to its shareholders.
Vornado Realty Trust is one of the largest real estate investment trusts in the United States. The company owns and operates a portfolio of office and retail properties in key markets across the country. The company has a long history of delivering strong returns to its shareholders through a combination of dividend payments and capital appreciation.
The decision to delay dividends is not unprecedented. Many companies have postponed or reduced their dividends in response to economic uncertainty or to invest in growth opportunities. However, investors are understandably concerned about the impact of the delay on their income and the long-term prospects of the company.
In conclusion, Vornado Realty Trust’s decision to delay its common-share dividends until the end of 2023 has caused concern among investors. The company has stated that it will use the funds that would have been used for dividends to invest in its properties, pay down debt, and pursue growth opportunities.
