Home Alts News The Parking REIT Suspends Cash Distributions

The Parking REIT Suspends Cash Distributions

The board of The Parking REIT Inc., a publicly registered non-traded real estate investment trust, has unanimously authorized a suspension of the company's cash distributions and stock dividends, effective immediately.

The board of The Parking REIT Inc., a publicly registered non-traded real estate investment trust, has unanimously authorized a suspension of the company’s cash distributions and stock dividends, effective immediately.

The board considered the company’s business, financial condition, liquidity, and the potential investment opportunities when considering this change in distribution policy, according to the company.

The move is expected to help preserve capital to maintain sufficient liquidity necessary to continue to operate the business and maintain compliance with debt covenants, including minimum liquidity covenants, as well as to enhance the value of the company for stockholders through potential future acquisitions.

The Parking REIT has a pipeline of investment opportunities that the board believes, if executed, will position the company for potential future growth and value creation.

The cash retained by the suspension of distributions should allow the company to continue to pursue investment opportunities while also preparing for a possible liquidity event in the future, the company said.

The board will continue to evaluate the company’s performance and expects to assess the distribution policy quarterly.

The Parking REIT Inc. (formerly known as MVP REIT II Inc.) invests primarily in parking lots and garages in the United States. The company’s $280 million portfolio is comprised of 44 parking facilities located in 15 states.

For more news on The Parking REIT, visit their directory page here.

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