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Cottonwood Cuts Monthly Distribution 8.8%, Closes $175M JPMorgan Facility
Cottonwood Communities will lower its monthly distribution from $0.05666667 to $0.05166667 per share beginning with the November 30 record date, an approximately 8.8% reduction, AltsWire reports. The board says the change better aligns payouts with earnings and is independent of its pending Mandel property mergers. The October distribution retains the previous rate.
Separately, Cottonwood's operating partnership entered a JPMorgan facility on October 16 comprising a $75 million term loan and up to $100 million of revolving commitments. Only $38 million of the term loan was funded at closing. Borrowings carry term SOFR plus 3.35%, with an initial maturity in October 2029 and two optional one-year extensions.
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