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CorEnergy Infrastructure Trust (New York Stock Exchange:CORR) said on Monday it will suspend dividend payments on its common shares and cumulative redeemable Series A 7.375% preferred shares.
The board said it is suspending dividends due to a combination of decreasing volumes and higher costs in its California systems.
“As a result, we are requesting a 36% rate increase on our SPB line in California based on the regulated cost-of-service rate structure,” said President and CEO Dave Schulte.
“Pending the resumption of dividends, we believe that retained capital better benefits shareholders through debt reduction,” Schulte also said.
Three months ago, CorEnergy Infrastructure Trust (CORR) reported a third-quarter GAAP loss of $1.17 per share.