** Shares of Easterly Government Properties Inc DEA.N fall 12.5% to fresh record low of $8.33 early Thurs after announcing dividend reduction
** DEA last down 11.2% at $8.45 and tracking biggest one-day pct drop since pandemic onset in Mar 2020
** Washington, D.C-based commercial real estate investment trust late Weds said board approved 32% reduction of qtrly dividend from $0.265 to $0.18
** Co said it's changing dividend philosophy to align with best practices of other net lease REITs
** It said it's targeting core funds from operation payout ratio in range of 55-65% and cash available for distribution payout ratio in range of 65-75%, and intends to maintain those ranges as both figures grow
** Dividend to be paid on May 17 to shareholders as of May 5
** It also announced 1-for-2.5 reverse stock split to take effect on Apr 28; post split, qtrly dividend will become $0.45 ($1.80/sh annualized)
** Co reaffirmed its 2025 earnings outlook, which will be updated to reflect Q1 earnings on or about Apr 29
** With ~108 mln shares outstanding, co has ~$900 mln market cap, per LSEG data
** Including move on the session, stock down ~26% YTD following >15% decline in 2024
** REITs have been clipped recently as yields surged on apparent large bond liquidations US
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.