BRMK - Broadmark Realty stock slumps after dividend slashed to cover distributable EPS

• Broadmark Realty Capital ( NYSE: BRMK ) stock lost 8.8% in Wednesday afternoon trading after the commercial real estate finance company halved its monthly dividend to preserve cash amid a challenging economic landscape.
• "Aligning our dividend to our distributable earnings will preserve capital and build additional liquidity," Interim CEO Jeff Pyatt said in a statement. The company cut the dividend to $0.035 per share for November 2022 from $0.07 in October.
• "Managing its $286M portfolio of NPLs (non-performing loans) we see as the primary drag on earnings," said BTIG analyst Eric Hagen in a note to clients.
• The analyst is keeping a Neutral rating on Broadmark ( BRMK ), "given the fairly low visibility right now surrounding the pipeline of defaulted assets," Hagen said. "We could get more constructive if resolutions for NPLs appear likely and new delinquencies slow."
• The company reported weaker-than-expected Q3 results earlier in November as it boosted boosted its provision for credit losses and the amount of loans on non-accrual status rose.

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