American Realty Capital New York City REIT Inc.'s board unanimously authorized a suspension of the company's distributions to common stockholders, effective March 1.
The commercial real estate investment trust said the move is intended to enhance its ability to execute on acquisitions, repositioning and leasing efforts related to the six properties it owns.
The cash retained through the suspension is expected to facilitate capital expenditures related to tenant improvements, new leases, lease renewals and acquisitions in New York City. The company also noted that tenant incentives, including rent-free periods, should improve occupancy rates.
The board expects to assess the company's distribution policy no sooner than one year's time.
