Well, this should stop people from being lazy about their search for yield.
Parkway properties (PKY) reported Funds From Operations, or FFO, way below what the street was expecting last night. FFO was 36cents per share, versus the expected 67cents. Shares are off 11.6%.
Forget that though, and look to 2010 guidance. They INCREASED FFO guidance to about 2.82 per share, decently above the street consensus of 2.58. Rent per square foot is actually up, but that's likely due to deadbeat tenants dropped, as occupancy continues to trend down.
Best news to me is the rent per square foot they were able to charge in the 4th quarter - it's above the company average and trending the right way:
So why the hell is the stock down???
It's down because hardly any of that 2010 FFO is yours as a common stockholder. The common dividend will be slashed from 1.32 last year to a measly 30cents in 2010. So all the thousands of investors looking at Yahoo Finance's (or google finance's, or Bloomberg's) quote of a 6.5% dividend yield as reason to buy the shares yesterday now wake up to see a new dividend yield of 1.6%.
Just another example of "KNOW WHAT YOU OWN." And you own scraps. The series D preferred stockholders, however, will receive a 50cent dividend on March 31, 2010 because they're ahead of common shareholders in the capital structure:
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