I think that you touch on an interesting point. DDR cannot pay off debt when they're paying out 100% of profits to shareholders. You don't have to be Einstein to work that out. So yes, Mr. Dicker may choose to raise capital. He's already admitted that rising interest rates are hurting returns. Well maybe this is the new normal? Maybe Mr. Dicker needs to revisit his payout ratio policy?
I love the business and what the business has achieved. But I've always been a tad concerned at the payout ratio. Surely, it's not sustainable. In the end, I hope DDR proves me wrong.
DDR Price at posting:
$8.15 Sentiment: None Disclosure: Held
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