ABR - the dividend can't continue to grow at the recent past rate, but at 7%+, I believe there will be enough
raises going forward to keep me happy.
From their conference call:
Stephen Laws - Deutsche Bank Thank you, and like Steve and I want to congratulate guys on a very nice quarter, and it looks like growth continues accelerate with regards to your new investment activity, Ivan on a couple of questions I was looking at maybe to follow-up on his last point, you guys have done a great job of growing the dividend, I think of about 53% since the first quarter of 2012. What is the best metric for us to really forecast the dividends, we look at the FFO and that back to non-cash is that really more massage by the board, because you are in a position where you can retain some cash flow for reinvestment in growth for the portfolio or really how should we think about getting our hands around the dividend trajectory from here?
Paul Elenio - Chief Financial Officer Sure Steve. Hey, it's Paul. I think the way we look at it and the board looks at it is in my commentary, in my prepared remarks I talked about kind of a core FFO run rate. And I think today in my prepared remarks I said, the core FFO run rate is about $55 million, $56 million as of June 30 looking forward with no new activity before operating cost and obviously reserves.
I think our operating cost right now for the first six months are running at a run rate of around $31 million to $32 million for the year. So that put you with roughly 24 million or 25 million of kind of core FFO, over 43 million shares that's roughly $0.55 to $0.57, the dividend annually now it's $0.52. So we look at that payout ratio with the board and say we want to keep some cushion.
I think what we have to be careful with when talking about what the dividend will be going forward, obviously we're very excited about the growth we've had, we're very excited about the pipeline and we'll just monitor what our runoff and what where our pipeline will go and that will depend on how quickly we can grow the earnings and to the dividend. But we look at it based on core earnings, we look at it, based on where we think it's going to go and what our reasonable payout ratio is. And that's kind of have all the factors we take into consideration when deciding a dividend.
Ivan Kaufman - Chief Executive Officer And I think clearly, management focus is on core earnings and to the extent that we can grow core earnings we like to provide a consistent growth and steady dividend.
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