Urstadt Biddle Properties dividend cut ends 26 years of increases

Urstadt Biddle Properties Inc. (UBA) will cut its quarterly dividend by 75 percent to 7 cents per share. This will end a great dividend track record with the shopping center REIT having raised its dividend every year for the last 26 years.

This action follows dividend cuts and suspensions in May by other companies known for their strong dividend history such as Ross Stores, TJX Companies and Tanger Factory Outlet Centers.
Urstadt Biddle will cut its quarterly dividend by 75 percent to $0.07 per share. In the company's press release announcing second quarter operating results for fiscal 2020 the company explains the lower dividend.

As a result of COVID-19 and the economic uncertainties resulting from the COVID-19 pandemic, the company’s Board of Directors reduced the dividend on its Common and Class A Common stock to $0.07 per Class A Common share and $0.0625 per Common share, respectively, a reduction of approximately 75% from second quarter dividends of $0.25 per Common share and $0.28 per Class A Common share, which will preserve $8.2 million of cash in the third quarter. Dividends on the Common shares and Class A Common shares will be paid on July 17, 2020 to holders of record on July 3, 2020. The company’s Board of Directors will continue to monitor the company’s financial performance and economic outlook and intends, at a later date, to adjust the Class A Common and Common stock dividends during fiscal 2020 to at least the amount required to maintain compliance with its REIT taxable income distribution requirements.

A new quarterly dividend of 7 cents per share will yield 1.9% at a stock price of $14.58. Urstadt Biddle Properties stock has lost 41.3 percent YTD as of June 9, 2020.

Another REIT cutting its dividend recently is Tanger Factory Outlet Centers (ticker SKT). Tanger had raised its dividend for 27 consecutive years. Also Dividend Aristocrat Ross Stores and fellow off-price retailer TJX Companies suspended their dividend in May because of COVID-19.

Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 85 properties containing approximately 5.3 million square feet of space. Listed on the New York Stock Exchange since 1970, it provides investors with a means of participating in ownership of income-producing properties. 

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