Discussion in 'Stocks' started by nitro, Dec 26, 2008.

  1. nitro


    AVB paid a $2.70 dividend. $1.80 of that is a "special" dividend. What part of that $1.80 is cash and what is equity? It is some sort of ratio based on the number of shares you already have, but I can't find that ratio anywhere?
  2. ?....it seems to be all cash. That's from doing a goog-search with "Avalon Bay + special dividend". :cool:
  3. special just means a 1 time dividend
  4. nitro


    I must not have explained myself very well. I figured it out. Thank you for the responses though.
  5. nitro


    No. It is .90 for the normal dividend and that is all cash. The other $1.80 is very complicated, and in fact depends on how many shareholders elect to do cash vs shares.

    This is the most convoluted "special dividend" I have ever seen.
  6. ALEXANDRIA, Va.--(BUSINESS WIRE)--AvalonBay Communities, Inc. (“AvalonBay” or the “Company”) (NYSE:AVB - News) announced today that its Board of Directors has declared a combined regular and special Common Stock dividend (“Combined Dividend”) of $2.70 per share. The Combined Dividend is payable on January 29, 2009, to holders of record of the Company’s Common Stock, par value $0.01 per share, at the close of business on December 29, 2008. AvalonBay’s Common Stock will begin trading "ex-dividend" on December 24, 2008.
    A portion of the Combined Dividend in the amount of $0.8925 per share represents payment of the regular dividend for the quarter ended December 31, 2008, and the remaining portion represents an additional special dividend payment (“Special Dividend”) in the amount of $1.8075 per share.

    The Special Dividend was declared to distribute excess income attributable to gains on asset sales from the Company’s disposition activities during 2008 in which an historically high level of asset sales were completed. During 2008, the Company sold ten communities with aggregate gains recognized for federal income tax purposes of $352 million. The Special Dividend is intended to enable the Company to avoid corporate level income taxes for 2008 and reduce federal excise taxes. The Company currently anticipates it will incur approximately $3 million of federal excise taxes for 2008. The following table summarizes 2008 disposition activity:

    seems pretty straight forward from the press release...which release or filing were you looking at?
  7. nitro


    If you traded options only on that information without digging deeper, you got smoked.

    I didn't post a link because the details are nowhere to be found. I called the research dept of my clearing firm.

  8. well you have me totally confused. is my bloomberg wrong? it says pretty much the same thing as that press release.
  9. nitro


    Yes. You are confused [as I was] and yes your Bloomberg is wrong [so is mine].
  10. i found out what you were talking about with the dividends being in stock. they talked about it barron's over the weekend as a way for reits to preserve capital. you don't have to be so nebulous next time. :)
    #10     Dec 28, 2008