It would be simpler and more conventional to simply suspend the dividend reinvestment plan, as many REITs have since they started trading at steep discounts to NTA. Without a DRP, existing shareholders have to purchase new shares on market, which would add some pressure to the share price.
The amendment is not particularly easy to understand, and I follow these sorts of things relatively closely: the average shareholder will be even more unsure.
Finally, they're going to charge .15% brokerage? This is an example of problematic stinginess. By my count, the last 4 DRPs involved about 68k of new units at around $1.60, so, around $108,800 of cash per month (or $1,305,600 per year). Therefore, on an annual basis, the brokerage would amount to around $1,958. Qualitas has decided that it's not willing to absorb around $2k annually to help reduce the substantial discount to NTA for a fund they manage.
Sheesh.
QRI Price at posting:
$1.43 Sentiment: None Disclosure: Not Held
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