Bay Apartment Communities Increases Dividends on Common, Preferred Shares.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Dec. 19, 1996--The board of directors of Bay Apartment Communities (NYSE/PSE:BYA) has increased the cash dividend on the company's Common and two series of Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. effective for the fourth quarter of fiscal 1996. The Common Stock quarterly dividend has been increased to $.41 per share from $.40 per share and is payable Jan. 14, 1997 to shareholders of record on Dec. 31, 1996. The Common Stock dividend is equivalent to an annual dividend of $1.64 per share. The Series A and Series B Preferred Stock quarterly dividend has been increased to $.4223 per share from the prior dividend of $.412 per share and is payable on Feb. 14, 1997 to shareholders of record on Dec. 31, 1996. The increased quarterly dividend is equivalent to an annual dividend of 1.689 per share. "Our continued growth in Funds From Operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. has enabled us to enact this third dividend increase since completing our initial public offering in March 1994," noted Gilbert M. Meyer, chairman and chief executive officer. "The dividend increases to date represent nearly an eight percent increase in our dividend since Bay's IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , a rate which approximates increases in the consumer price index during this period," he continued. "We are gradually but consistently reducing our payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. , that is, our dividends as a percentage of our Funds From Operations. Our long term strategy is to retain an ever increasing portion of our operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. to grow the company," he added. Bay Apartment Communities is a fully integrated multifamily real estate investment trust focused on the acquisition, development and management of high quality apartment communities. The company owns 34 apartment communities containing 8,754 apartment homes. The company's portfolio consists of 31 apartment home communities in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay and Northern California, with the remaining three communities located in Orange County in Southern California. CONTACT: Bay Apartment Communities Gilbert M. Meyer, 408/983-1500 Max L. Gardner, 408/983-1500 Jeffrey B. Van Horn, 408/983-1500 |
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