New Senior Investment Group is retaining its 26 cents per share quarterly dividend for the three-month period ended March 31.
The amount is payable June 22 to shareholders on record as of June 11.
The real estate investment trust said its ongoing review of strategic alternatives to maximize shareholder value is a significant factor in maintaining the dividend at its current level. New Senior said its board expects to disclose the result of the review, along with a change in the company's dividend policy, in the coming months.
Under the strategic review, the company is terminating its triple-net leases with affiliates of Holiday Retirement for a total price of $116 million. The company also signed agreements with the affiliates of Holiday Retirement, which is majority-owned by private equity funds managed by the REIT's manager. Under the agreements, the REIT will pay a management fee equal to a monthly base fee of 5% of effective gross income in the first year and 4.5% of effective gross income for the remaining period.
A special committee of the board, comprising independent and disinterested directors, has approved both agreements.
