Catchmark timber Today’s shares of (NYSE:) dropped almost 18% after the lumber REIT made an announcement about a cut in dividends and another operational announcement.

CTT announcedIt was cashing out its joint venture with TexMark Timber Treasury L.P. (Triple T) and receiving a $40M payout that will be used to pay down its debt. According to the company, results for 2021 would be at the top end of its adjusted EBITDA range.

CTT stated that the company would reduce its dividend to $.3/share per year, $.075/quarter due to the reduction in asset management fee. This will take place starting in Q4, instead of $.54/$.135 levels.

“We believe the right-sizing of Catchmark’s annualized dividend rate is a prudent decision that will enable the company to prioritize investing in the growth of its core portfolio which will ultimately enhance earnings growth and net asset value over time. In addition, the anticipated annualized dividend rate for 2022 should enable us to maintain our historical payout ratio of 75% to 85% of cash available for distribution,” said Douglas D. Rubenstein, Chairman of the Board for Catchmark.

Catchmark saw strong earnings in Q2 despite high lumber prices. Shares are now up 6.5% for the year, as the sell-off wipes out much of the stock’s gains.