NovaStar Financial (NFI) terminates dividend
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The following news item regarding NovaStar Financial Inc., ticker symbol NFI, was released by the Associated Press today.
KANSAS CITY, Mo. (AP) — Mortgage lender NovaStar Financial Inc. said Monday it was terminating its status as a real estate investment trust, retroactive to the beginning of this year, after determining it could not pay investors a required dividend. The company’s shares plunged more than 21 percent after the announcement.
Back in February, right the peak of the REIT market, I wrote about the fragile nature of REIT yields. If you have REIT exposure in your portfolio, I’d recommend checking out the post.
