Saturday, June 7, 2008

Update on May Dividends

Just wanted to provide a quick update on dividends for May. I should be finalizing the may numbers tomorrow, and posting the dividends at that time. All in all, May was a medium month - I lost a lot of renters, but found some new ones. Occupancy levels are still lower than I am comfortable with, but they seem to reflect the pattern I have heard all over SL in the last six weeks that business all over is slow.

Nevertheless, i will be able to provide a decent dividend (at this point it looks like a 0.1L per share dividend). In order to be able to afford it, i will not be collecting my own salary this month.

At this point I am still deciding whether or not to do any buybacks - I probably have enough personal cash to do some, but I am worried about the tenuous state of the SL economy, and so am thinking about building up a reserve to ensure that tier is covered on all islands for more than a month at all times - so I am probably going to throw my cash into the kitty. In addition, the juicy prices of mainland (for buyers that is) are tempting me more and more to get back into the mainland rental business - since the buy-in cost is so low now and it does provide a cheaper alternative for residents on a strict budget.

Operationally, I still seem to be unable to stop growing! In May, i did purchase a few more Openspace sims, which seem to be doing very well. By the end of June, DDE should have almost 20 Openspace sims and 19 or 20 regular islands. Things are running smoothly, although the continuing database problems in SL have certainly made many of the tenants grumpy.

More soon!

dd

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