~ Raj, Maybe The Following Will Be Helpful, A Few WMI' Basics First ~
* Only WMIIC & WMI, the "Holding Company", filed for bankruptcy, and currently per the SEC 10-Q and 10-K submissions, (the)*Mr Cooper Group is merely a direct subsidiary of the original WMI Parent Corp., WMIH-Corp
* initially, other than WMIIC, No other WMI Subsidiary's were allowed to file and be joined for procedural purposes' (Judge Walrath Ruled)
* WMI's business model used its corporate structure to issue and then package loans into securitized ABS-Certs (Trusts) and then sell most, but not all of them, keeping a percentage of the A paper packaged in the private equity commercial lines for its own income benefit' ... (WMI SEC 10-Q and 10-K Reporting pre seizure and pre bankruptcy) ...
* These securitized Trusts', upon their completed packaging and participation sold, became an individual functioning financial, Trustee Managed ...
* The WMI Holding Companies Bankruptcy's placed "everything" associated with the Holding Company' into a holding pattern', including any WMI earned income from these Trusts' that WMI had chosen to participate in' ...
* Now, WMI' has reorganized into first, WMI Holdings Corp, and now the current WMIH-Corp' ... and its Bankruptcy Cases have satisfied the Courts Plan allowed Creditors and Claimants, and have Closed The Cases as of 12/23/2019 (Judge Walrath)
* Per the WMI Plan 7 Disclosure Statement', the segregated Trusts are given direction and realized ...
* The "Trusts" WMI participated in, were mainly "Real Estate Investment Trusts" ... REITs ... again WMI mainly participated in the commercial lines and basically shed itself by way of selling the packaged products of the high maintenance' residential' lines (the "R" in REIT DOES NOT stand for Residential, the "R" stands for the word "REAL" as in a true asset based financial offering)
* So, WMI's Plan 7 allowed You (and I), to be given "TWO" distinct things for our "Participation" in Plan 7 by way of our release submitted, the First were DTC issued ESC Cusips for our holdings, (03/20/2012), and the Second were the shares in the newly reorganized company ...
* NationStar, now COOP, was NOT chosen randomly, NationStar was chosen as an Acquisition Target because it was merely a loan originator and servicing entity. Due to the fact that NationStar, NEVER packaged or participated in any securitized Trust', ... there was no possibility to ever track a REIT' dividend distribution to its shareholders' ...
* REITS need to follow what is referred to as the 90% Rule', ... Our dividend returns were put into a holding pattern while the WMI Bankruptcies were completed ... (WMI, as a consolidated filer, was the issuer of our common share dividends prior to the 2008 seizure and bankruptcy's filed. the WMI Preferred Fixed Income Bonds were a separate consideration and purchase)
* We (you and I), have already been issued our shares in the newly reorganized WMI, "trading as COOP", however, our DTC issued WMI ESC Cusips will now be utilized as the distribution mechanism for our REIT' dividend returns ... "P" Fixed Income 939ESC992, "K" Fixed Income 9393ESC84, and the Disclosure Statement referred to Common Shares wamuq's 939ESC968 ...
* We' (you and I) should now be in a position to receive our withheld' dividends in December of 2020 as two separate releases, the first one as of 12 year withheld accumulated amount, and the second one as the actual yearly amount for 2020's earnings. ... and then every year following for a yearly earned income, always in December as well, until each of the performing Real Estate Investment Trusts, the REITs continue to function ...
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Here is some additional information that may be helpful; also remembering that it was WMI' the Parent Corp that by way of its corporate structure, participated in ABS-Certs, Trusts', ... NOT (the)*Mr Cooper Group, and then that the WMI BK's are finally closed' ...
REITs must pay out at least 90% of profits in the form of dividends to investors. Thus, 90% is the REIT dividend payout ratio.
The 90% rule was put into place by the IRS and requires REITs to pay at least 90% of income to shareholders.
It’s important to note that depreciation and amortization on properties can reduce net income. These are items that will inevitably be part of a REIT’s balance sheet.
And because net income is in the numerator of the earnings per share formula, earnings per share are reduced as net income decreases. Thus, the reduction in net income means that REITs will have a higher dividend payout ratio.
At 90%, the dividend payout ratio seems high for REITs. After all, this quite literally means that 90% of the company’s profits would have to be returned directly to investors.
Despite this, deprecation and amortization don’t actually cost the REIT anything. So even though your REIT dividend payout ratio may be close to 100%, there’s a fairly good chance you aren’t actually being paid out such a high percentage of their earnings as a whole.
It’s possible that at times, you may see a REIT with a dividend payout ratio higher than 100%. While that sounds nice, it may not be sustainable because it might mean the business isn’t reinvesting enough of its earnings back into the business.
That being said, that isn’t always the case. In fact, there are several very dependable REITs that have incredibly high dividend payout ratios:
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There's a lot more of course, however, this should be enough to turn your own study patterns and curiosity loose' on your investment, ... as I've said before, I have been using these dividend producing processes for many, many, many, years as an income vehicle ...
AZ
