Cole Office & Industrial REIT (CCIT III) Changes Distributions, DRIP and SRP Policies
May 1, 2020
On April 29, 2020, the Board of Directors of Cole Office & Industrial REIT (CCIT III), Inc. announced changes to the Company’s Distribution Reinvestment Plan (the “DRIP”), effective May 15, 2020.
From the 8-K filing:
“The Amended DRIP amends and restates the Company’s Distribution Reinvestment Plan (the “Plan”) and, among other changes, (i) provides that the Plan may be suspended at any time by majority vote of the Board without prior notice to Plan participants if the Board believes such action is in the best interest of the Company and its stockholders, and (ii) clarifies that the Company may provide notice of any amendment, supplement, suspension or termination of the Plan by including such information in a Current Report on Form 8-K or in its annual or quarterly reports filed with the Securities and Exchange Commission (“SEC”) or in a separate mailing to Plan participants.”
The Company’s Board also has decided to make a determination as to the amount and timing of distributions on a monthly, instead of quarterly, basis.
“Given the impact of the COVID-19 outbreak, the Board has decided to make a determination as to the amount and timing of distributions on a monthly, instead of a quarterly, basis until such time that the Company has greater visibility into the impact that the COVID-19 outbreak will have on its tenants’ ability to continue to pay rent on their leases on a timely basis or at all, the degree to which federal, state or local governmental authorities grant rent relief or other relief or amnesty programs applicable to its tenants, the Company’s ability to access the capital markets, and on the United States and worldwide financial markets and economy.
On April 20, 2020, the Board authorized a distribution for the month of April 2020 of $0.04098 per share of the Company’s Class A and Class T common stock, less the per share distribution and stockholder servicing fees that are payable with respect to shares of Class T common stock (as such fees are calculated on a daily basis). The distributions for each class of common stock are payable to stockholders of record as of the close of business on April 30, 2020 and will be paid on May 1, 2020. These distributions will be paid in cash or reinvested in shares of the Company’s common stock for stockholders participating in the Company’s distribution reinvestment plan.”
The April distribution rate, annualized, is approximately 5.00% based on an initial offering price of $10.00, unchanged from the previous quarter.
The Share Redemption Program was modified as follows:
“On April 29, 2020, the Board approved and adopted an Amended and Restated Share Redemption Program (the “Amended Share Redemption Program”). The Amended Share Redemption Program is effective as of June 1, 2020.
The Amended Share Redemption Program amends and restates the Company’s Share Redemption Program (the “Program”) and, among other changes, replaces the requirement for advance notice of any modification, suspension or termination of the Program with a provision that the Board may amend the terms of, suspend or terminate the Amended Share Redemption Program in its sole discretion if it believes that such action is in the best interest of the Company and its stockholders, and that any material modifications or suspension of the Amended Share Redemption Program will be disclosed to stockholders as promptly as practicable in the Company’s reports filed with the SEC and via its website. The Amended Share Redemption Program also clarifies the types of stockholders whose share redemption requests are eligible to qualify for the special treatment that may be afforded in event of the death of a stockholder, as well as the process for such redemptions, and extends the time during which notice of any stockholder death must be given in connection with any such redemption requests, from 270 days to 12 months.”
Source: SECGo Back
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