We scour the net for great ideas, so you don't have to
Claim this username to collect earnings from this post, and the portfolio!
I have been researching the classic r/dividends love $O and there is a rather disturbing paragraph on their website under the "Buy and Fund Property Acquisitions" subsection. "To immediately fund acquisitions, we maintain an acquisition credit facility of $3 billion, which also has a $1 billion accordion expansion feature. Ultimately, we seek to permanently fund our acquisition activity by issuing additional common and preferred stock or issuing long-term, investment-grade-rated bonds. "
I understand that sometimes issuing stock is necessary for big acquisitions, which is what this sounds like, but this is also in between a lot of text referring to "tenants" and text that sounds like smaller individual deals. So are they funding smaller deals by issuing CS into the market as well?
Comparing shares outstanding to competitors to $O it seems to be increasing rather aggressively since 2012. I like a lot of things about $O but if this is their business plan to sustain growth and/or maintain the dividend (this paragraph I am referencing is actually in the "How we generate dividends" section) this would be a HARD pass.