Core dividend holdings must continually increase spending. Without steady growth, inflation begins to bite investors’ returns. The dollar became 98 cents, turned 96 cents, and you got this picture.
And it’s important to monitor the growth of dividends for your real estate investment trusts (REITs). I want to buy real estate investment trusts that keep raising their rent. Increasingly, rent checking has created more and more bonus checks for us!
In the long run, real estate investment trusts’ stock prices have risen. These expenditures are also thin as last year, when all we got was dividends!
2017 is not an interesting year for real estate investment trust investors, while the Vanguard REIT ETF remained flat this year, excluding dividends. However, the actual differences in these expenditures can be seen in the PowerShares KBW high-yielding REIT portfolio, which focuses on small and medium-sized REITs.
Without a big bonus, your bonus is 7%. With it, you at least try to balance it. This is not a small difference.
This is why it is important to monitor any real estate investment trust you hold in dividend growth. Slow or not paying for expansion may be a disturbing sign. February is a particularly large month for the industry, with a whole lot of real estate expected to generate revenue volatility. Let’s look at Real Estate Investment Trusts in July (REITs) to see how the dividend rose in February:
Dividend yield: 2.7%
Although many real estate investment trusts are struggling throughout 2017, the logistics industry, Prostis, is soaring. The company specializes in warehouses and distribution centers, up 22% over the flat performance of the Vanguard REIT ETF.
So why not? E-commerce is a kingly, evolving industry – whether it be Internet operators or physical retailers, more and more of these buildings are needed to fuel the growing number of online orders. Prologis currently has 5200 customers in 19 countries.
The company has increased its operating core funding (FFO), a key measure of the financial health of the REIT, from $ 1.94 per share in the first nine months of 2017 to $ 2.14. The company will release fourth-quarter earnings in late January, with the announcement of an increase in dividends likely to wait until the last week of February.
PS Business Park
Dividend yield: 2.7%
PS Business Park is one of the more diversified REITs on the market. Although the name clearly shows that the company leases traditional office space, its property also includes industrial real estate and warehouses – which it started with 95% of the 395 apartments. If that’s not enough, it also manages about 700,000 square feet of rented space on behalf of Public Storage, Inc. and its affiliates.
This eclectic mix basically works in the PS Business Park, where VNQ almost quadrupled over the past five years and outperformed by 9 percentage points in 2017. That said, a strong start to collapse at the end of the year was partly due to a 4.9% decline in FFO and a slight decline in occupancy in the third quarter.
However, since 2013, the dividend payout ratio has been raised from 93% in 2013 to the current quarterly distribution of 85%, with a special dividend of US $ 2.75 in 2014. Investors are likely to hear that dividends have improved in the second half of February.
First Industrial Property Trust
Dividend yield: 2.7%
First Industrial REIT is another prolific multiplier who has seen its quarterly dividend increase nearly 150% since 2013.
FR is able to do this because of its growth engine business, which consists of national and regional distribution centers, light construction and research and development sites. At the same time, FR also offers property management services that occasionally sell properties to companies that prefer to own rather than lease.
Peter E. Baccile, the company’s chief executive, said in its third quarter report that “the U.S. industrial real estate market continues to enjoy a wide range of tenant needs, leading to low vacancy rates and rising market rents.
The first industry should be another bonus rise. If so, investors will get the news later this month.
Dividend yield: 2.9%
Data Center Real Estate Trust CyrusOne There is a boffo in 2017, with a modest dividend, and a 28% price increase, which should improve in late February.
CryusOne operates 40 data centers in the United States, Singapore and the United Kingdom. However, the company has indeed expanded its international presence in the second half of 2017 through a series of initiatives. In December last year, it acquired Zenium Data Center for 442 million U.S. dollars – Europe’s leading provider of very large data centers with four properties in London and Frankfurt. A few months ago, it announced a commercial deal with GDS Holdings, a developer and operator of data centers in China, to “sell and sell data center space and related services in the U.S. and China markets, the world’s two largest economies.”
Real estate investment trusts have also performed well on their own, with the normalized FFO per share up 18% from a year earlier and up 79% in the most recent quarter, up 22%.
Ryman Hospitality Attributes
Dividend yield: 4.6%
Ryman Hospitality Properties is just at the crossroads of “experiential economy,” boasting Washington’s convention centers and resorts; Dallas, Orlando and Nashville, not to mention the Big Opry and Ryman Auditorium.
Ryan suffered a devastating hurricane in the South East, with revenues falling 2.6% in the third quarter and FFO 14%, enough to give FFO a negative FFO for the nine months to September. Nevertheless, investors are taking longer to bid for RHP in the last quarter of this year.
Despite the company’s fight, the dividend increase should be coming soon. But investors may have to wait until the end of this month to find the answer.
National Health Investor
Dividend yield: 5%
National Health Investors, a stable dividend growers, have increased their stakes for 15 consecutive years, including an annual rate of 7.7% over the past five years.
National Health Investors finance advanced housing and healthcare investments for a wide range of properties, including specialist care facilities, ancillary nursing communities, and medical office buildings. NHI has 216 properties among 34 operators in 32 states.
Company stock struggled in 2017 despite the strong performance of the company in its annual final report. Third-quarter revenue rose 13%, boosting FFO by 11% to $ 1.35 per share, enough to cover its 95% dividend 142%.
As a result, investors can feel good in another dividend rise in mid-February.
Dividend yield: 5%
Armada Hoffler is a real estate investment trust located on the east coast that operates primarily in Washington, DC, Baltimore, the Virginia coast and the state of Carolina. Owns and operates Grade A office space, mixed-use retail and Class A multi-family homes, including student housing.
Retail (45%) is the largest net operating income of the company, with mixed-use retail accounting for 15%. The retail risk was weakened in 2017, but it did increase in the last months of the year. Thanks to third-quarter earnings, Armada presented guidance for the full year 2017, and now it is estimated that the standardized FFO price of 98 cents to $ 1 will rise from 97 cents to 99 cents per share.
Technically, AHH more than doubled the initial 8% dividend payout since its initial public offering in 2013, but its share price soared over the same year when dividend per share was 16 cents. Since then, Armada’s quarterly yield has been only 19 cents – FFO paid only 76% under the high-end guidance of 2017.
But of course investors will want the next rate hike expected ahead of the company, probably in the first week of February.