VEREIT, Inc. (NYSE:VER) Q1 2020 Earnings Conference Call - Final Transcript

May 20, 2020 • 04:15 pm ET


VEREIT, Inc. (NYSE:VER) Q1 2020 Earnings Conference Call - Final Transcript


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Glenn Rufrano

to reduce the dividend for this quarter is not based generally upon a micro review of our business, but more importantly, on a macro view of an uncertain economy. The difficulty in predicting the duration of this economic disturbance is glaring. The possibilities are extraordinarily wide.

When you know where you are, you can better judge what to do and how to do it. While we are getting a better view of tenant receipts with April and May, duration can have a variety of outcomes. Our view is that with such uncertainties, strong balance sheet maintains stakeholder value. The sizing of the dividend was based upon a series of financial analyses, dissecting a range of possible outcomes throughout this year and next. We chose this base amount on which to build the dividend while protecting against any increase in debt. As more information is available in each of the next two quarters, this decision will be under constant review.

As you heard in Paul's presentation, our portfolio diversification is serving us well, not only by property type, but also investment grade percentage, credit, industry and geographic limits as well as a high percentage of public companies. We will of course reevaluate the portfolio parameters as we move throughout this year. While we are in a very difficult environment, our business model provides the ability to grow and thrive once we get past this. Although disappointed that 2020 will be a transition year, our experience in transforming the company over the last five years will provide strength to get us through this. Our expectation for the future is that our liquid balance sheet, diversified portfolio, experienced team and partnerships will all perform and reignite hopefully in 2021.

Before ending, I would like to applaud those in the healthcare profession and all first responders, who have made such a difference in our lives, certainly mine. I also want to take this time to thank everyone for their kind notes during my recovery from the virus. They were great pick me ups, and very much appreciate it.

I'll now open the line for questions.