Is This High-Yield Stock Warning About a Dividend Cut?
The COVID-19 pandemic continues to have a terrible impact on office landlords, as the work-from-home trend has lingered long after the world has started to reopen for business. There is already a sizable list of office real estate investment trusts (REITs) that have cut their dividends. Boston Properties (NYSE: BXP) isn't on that list, but it seems to be warning investors that it might be some time soon. Here's what you need to know.
The big problem for office REITs is a lack of physical occupancy. Basically, people working from home have left offices half-empty even though there may be a lease in place that is getting paid on time. That's not hyperbole. SL Green (NYSE: SLG), a New York City-focused office landlord, noted that physical occupancy only reached about 60% of pre-COVID levels on some days of the week. That's hardly a statement of strength.
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Source Fool.com
