IStar to skip third-quarter dividend payment

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By AP
02 October 2008 @ 11:58 pm AEST

NEW YORK - IStar Financial Inc., a real estate investment trust focused on commercial real estate, said Thursday it will pay out the remainder of its 2008 dividend in the fourth quarter, skipping a payment in the third quarter.

REITs are required to pay out 90 percent of their annual taxable income to common shareholders. IStar Financial typically pays out its entire taxable income as a dividend.

For 2008, iStar Financial has already paid out $1.74 per share in dividends and will pay out the balance of taxable income during the fourth quarter.

The move to skip the third-quarter dividend reflects the ongoing credit crisis and its effect the financial sector, the company said in a statement.

Shares of iStar fell 41 cents, or 17 percent, to $1.99 in morning trading.

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