CommonWealth REIT Announces New Common Share Dividend Rate
NEWTON, Mass.--(BUSINESS WIRE)--
CommonWealth REIT (NYSE: CWH) today announced a new quarterly Common
Share dividend rate of $0.25/share ($1.00/share per year). The next
quarterly dividend of $0.25/share will be paid to holders of record of
Common Shares at the close of business on October 22, 2012, and will be
distributed on or about November 21, 2012. The new quarterly dividend
rate represents a reduction from the quarterly dividend rate of
$0.50/share ($2.00/share per year) previously paid by CWH. The new
annualized dividend rate of $1.00 per share per year represents a 6.8%
annual yield on yesterday's NYSE closing price of CWH Common Shares
($14.77/share).
CWH determined to lower its historical common share dividend rate, in
part, because it believes that retaining more cash flow may enable the
company to more aggressively lease space and increase occupancy at its
properties in the current market conditions.
The dividend rates payable on CWH's Series D convertible Preferred
Shares and Series E Preferred Shares are not affected by this
announcement.
CommonWealth REIT is a real estate investment trust which primarily owns
office properties located throughout the United States. CWH is
headquartered in Newton, MA.
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND
OTHER SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
CWH'S PRESENT BELIEFS AND EXPECTATIONS, BUT THESE STATEMENTS AND THE
IMPLICATIONS OF THESE STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT
OCCUR FOR VARIOUS REASONS, SOME OF WHICH ARE BEYOND CWH'S CONTROL. FOR
EXAMPLE:
THIS PRESS RELEASE STATES THAT CWH BELIEVES THAT BY LOWERING ITS
HISTORICAL COMMON SHARE DIVIDEND RATE IT WILL BE ABLE TO RETAIN MORE
CASH FLOW, ALLOWING CWH TO MORE AGGRESSIVELY LEASE SPACE AND INCREASE
OCCUPANCY AT ITS PROPERTIES. HOWEVER, THERE IS NO GUARANTEE THAT CWH
WILL BE SUCCESSFUL LEASING SPACE AND NO GUARANTEE THAT OCCUPANCY WILL
INCREASE AS A DIRECT OR INDIRECT RESULT OF LOWERING CWH'S COMMON SHARE
DIVIDEND RATE OR OTHERWISE.
THIS PRESS RELEASE STATES THAT CWH'S DIVIDEND RATE WILL BE $0.25/SHARE
PER QUARTER OR $1.00/SHARE PER YEAR. A POSSIBLE IMPLICATION OF THIS
STATEMENT IS THAT CWH WILL CONTINUOUSLY PAY QUARTERLY DIVIDENDS OF
$0.25/SHARE PER QUARTER OR $1.00/SHARE PER YEAR IN THE FUTURE. CWH'S
DIVIDEND RATES ARE SET AND RESET FROM TIME TO TIME BY CWH'S BOARD OF
TRUSTEES. THE CWH BOARD CONSIDERS MANY FACTORS WHEN SETTING DIVIDEND
RATES INCLUDING CWH'S HISTORICAL AND PROJECTED INCOME, NORMALIZED
FUNDS FROM OPERATIONS, CASH AVAILABLE FOR DISTRIBUTION, THE THEN
CURRENT AND EXPECTED NEEDS AND AVAILABILITY OF CASH TO PAY CWH'S
OBLIGATIONS, DISTRIBUTIONS WHICH MAY BE REQUIRED TO BE PAID TO
MAINTAIN CWH'S TAX STATUS AS A REAL ESTATE INVESTMENT TRUST AND OTHER
FACTORS DEEMED RELEVANT BY CWH'S BOARD OF TRUSTEES IN THEIR
DISCRETION. ACCORDINGLY, FUTURE DIVIDEND RATES MAY BE INCREASED OR
DECREASED AND THERE IS NO ASSURANCE AS TO THE RATE AT WHICH FUTURE
DIVIDENDS WILL BE PAID.
FOR THESE REASONS, AMONG OTHERS, INVESTORS ARE CAUTIONED NOT TO PLACE
UNDUE RELIANCE UPON ANY FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.
A Maryland Real Estate Trust with transferable shares of beneficial
interest listed on the New York Stock Exchange.No shareholder,
Trustee or officer is personally liable for any act or obligation of the
Trust.
CommonWealth REIT Timothy A. Bonang, 617-796-8222 Vice
President, Investor Relations or Carlynn Finn, 617-796-8222 Senior
Manager, Investor Relations
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