For REITs:
http://www.investopedia.com/articles/04/112204.asp
" The general calculation involves adding depreciation back to net income (since depreciation is not a real use of cash, as discussed in the above paragraph) and subtracting the gains on the sales of depreciable property. These gains are subtracted because we assume that they are not recurring and therefore do not contribute to the sustainable dividend-paying capacity of the REIT. "
Payout Ratio for TTM for LTC looks something like:
Net Income : 67,000,000
Depreciation: 25,000,000
_______
92,000,000
Dividends: 73,000,000
73/92 = 79.3% payout ratio
http://www.investopedia.com/articles/04/112204.asp
" The general calculation involves adding depreciation back to net income (since depreciation is not a real use of cash, as discussed in the above paragraph) and subtracting the gains on the sales of depreciable property. These gains are subtracted because we assume that they are not recurring and therefore do not contribute to the sustainable dividend-paying capacity of the REIT. "
Payout Ratio for TTM for LTC looks something like:
Net Income : 67,000,000
Depreciation: 25,000,000
_______
92,000,000
Dividends: 73,000,000
73/92 = 79.3% payout ratio