NEW YORK, Feb. 1, 2016 /PRNewswire/ -- The Community Development Trust (CDT), which provides long-term debt and equity capital for the creation and preservation of affordable housing, today announced the declaration of a special dividend of 30 cents per share to a Class B Common stockholders as of Dec. 31, 2015.
This is the third special dividend that CDT has paid over the past eight years.
"CDT has paid a regular dividend since 2001 and most recently increased the annual dividend by 17.6 percent in 2014 and 5 percent in 2015," said John Divers, CDT's COO and CFO. "Our dividend policy demonstrates that we remain committed to fulfilling our dual mission of providing debt and equity capital to underserved markets across the country, and delivering competitive returns to our investors."
Divers added that, including the special dividend, CDT's total dividends to its common stockholders in 2015 will be a record $1.14 per share.
In addition to the special dividend, CDT also announced the conversion of $31 million of its 4.25% Cumulative Convertible Preferred Stock, Series A ("Convertible Preferred Stock"), into Class B Common Stock. This represented a decision by approximately 55 percent of the holders of CDT's Convertible Preferred Stock to convert all or some of their shares into CDT's Class B Common Stock. The $31 million of Convertible Preferred Stock was converted into 1,860,000 shares of Class B Common Stock, approximately a 40 percent increase in the common shares outstanding. Since these conversions became effective before close of business on Dec. 31, 2015, the new common shares are eligible to receive the special dividend that was just announced.
"We are very pleased by the decisions reached by many of our institutional investors to increase their investments in our common stock," said Joseph F. Reilly, president and CEO of CDT. "We believe this is evidence of their continued confidence in CDT's operating performance and our future direction. It also strengthens our current capital structure and positions us well for decisions on future capital raises."
The special dividend and stock conversions follow CDT's robust 2015 financial performance. Last year, CDT deployed $36.3 million in capital and added $3.1 million of annual cash flow – both record highs. CDT also completed the largest equity investment in its history, $17.1 million, and increased the net worth of the company to more than $230 million.
"And most important, our work made a positive impact on the lives of more than 3,800 low- and moderate-income families and senior citizens," Reilly said.
The Community Development Trust (CDT) is a national lender and investor in affordable communities. Working with local, regional and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its 16 years, CDT has invested over $1.2 billion in debt and equity capital to properties in 42 states and regions — helping to preserve and create nearly 37,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender and a member of the Federal Home Loan Bank of New York (FHLBNY).
SOURCE Community Development Trust