Strategic Realty Trust Cuts Distributions for Fourth Quarter 2019
January 24, 2020 | Margaret Armour | Blue Vault
In a shareholder newsletter dated January 2020, the Board of Directors of Strategic Realty Trust (the Company) reiterated their short-term goals: selling the remaining legacy properties as a completion of the portfolio recycling process and refinancing the Company’s line of credit facility, which matures February 2020.
Perhaps the most significant change reported is a cut in distributions for the fourth quarter 2019. The Board declared a distribution of $.02 per share, down from $.06 per share from the previous quarter. Reasons cited for the cut are “where the Company is in the portfolio’s strategic position and the other is related to restrictions contained in the Company’s line of credit.” The Company’s current line of credit agreement contains caveats that can restrict specific payouts, including distributions. Pending the refinancing of the credit line and reinvestment of sales proceeds, the Board may choose to conserve cash during these negotiations.
The Company is in the process of selling the two remaining legacy properties: Topaz Marketplace in Hesperia, California, and the Turkey Creek property in Knoxville, Tennessee. The Board also sold the Company’s remaining interest in two SGO ventures with Oaktree Capital Management affiliates for $4.2 million.
As of September 30, 2019, the Company held $90.7 million in real estate assets with a total of $97.3 million in assets. The Company had two properties under development with estimated completion dates of December 2019 and January 2021. Distributions paid in the third quarter of 2019, at $.06 per share, totaled $646,000. Net cash provided by operating activities for the same period totaled $389,000.
Source: Strategic Realty Trust; Blue Vault
