Dividend Picture Rosy for Hotel REIT Stockholders

DALLAS-Dallas-Ft. Worth-based REITs, PMC Commercial Trust and FelCor Lodging have posted earning reports that’ll put a little extra into shareholders’ pockets.

PMC, headquartered in Dallas, is paying out a fourth-quarter dividend of .365 cents per common share, which falls on the high end of a range that had been predicted in the third quarter. The payout is being calculated in a new manner, with dividends now being based on expectations of earnings per share and FFO. The REIT historically has paid dividends based solely on FFO expectations. The dividend will be paid Jan. 12, 2001, to stockholders of record as of Dec. 29.

The change, says PMC’s chairman Dr. Andrew S. Rosemore, has occurred due to the current interest rate environment, competition, leverage availability, loan portfolio activity and other REIT stock performances. FFO not being paid out as dividends will be applied to loan originations, debt reduction and possibly an extra year-end dividend, he says.