SVC
Not arguing it is a expense. But all REIT's pretty much have huge depreciation. Have you ever owned any reits? Take a look. SVC is not flashing some red signal.
They all do it (some examples).
MPW
OHI
APLE
VTR
O
There are hundreads if not thousands of REITS with property, they give out dividends differently it is not to EPS (Like any other, it is to FFO. that is how REITS are looked at.
Now by all means SVC has not been a better performer, and I think this massive transition they are doing is gonna work out of course, I mean I could be wrong. Time will tell.
My point being is EPS is the wrong way to Look at REITS that are property REITS, I mean a stock like NRZ is different, but anything with real estate on it's books you would be hard pressed and that reit is in my opinion woefully under returning to it shareholders. I see plenty of REITS, not good investable ones that give out close or more than there FFO, now that is quite a scary situation and only a matter of time before they cut the divy in most cases.
As A big REIT guy, I just want to point you to FFO which is $2.85 through 9 months hapens to be waaaaaaaaaaaaaay higher than the $2.16 annual divy in my opinion. Hence the divy is safe. All is just my opinion, and I could always be wrong though.
