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  "documentTitle": "Realty Income Corp (O)",
  "authorId": "01_Pershing_Square",
  "authorName": "Pershing Square Capital Management",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2009-10-06 00:00:00",
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      "text": "We believe that O's stock price depends on its ability to maintain its monthly dividend",
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      "text": "1) Dividends and Other Restricted Payments covenant: Per the Credit Agreement (5/15/08), quarterly dividends and share repurchases may not exceed 95% of FFO plus preferred dividends for each of the trailing four quarters. 2) Minimum Tangible Net Worth covenant: Per the Credit Agreement (5/15/08), we estimate that O must maintain a Tangible Net Worth of ~$1.3bn and that Tangible Net Worth is currently ~$1.6bn (as of 6/30/09) implying that O has an approximate $0.3bn cushion under that credit facility. O's Net PPE is approximately $2.8bn.",
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      "text": "Liquidity from O's current revolver may be at risk if there are sufficient asset writedowns or sufficient reductions in FFO. Asset writedowns could be caused by tenant bankruptcies and / or declines in real estate values. Current cash on hand represents only about 2.5 months of dividends.",
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      "text": "Despite having no debt maturities until 2013, Realty Income could face significant problems if its tenants continue to go bankrupt. Even a small decline in NOI could prevent the company from funding its current dividend from operating cash flow.",
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      "text": "O may need to reduce its cash dividend which we expect would adversely impact its stock price. Many retail shareholders own the stock for its monthly dividend.",
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