Seeking Alpha
Dividend investing
Profile| Send Message|
( followers)  

Since REITs are required to pay 90 percent of their taxable income to shareholders in the form of dividends, the decision to slash or suspend dividends is a sign that a REIT's core business is suffering. A dividend increase or reinstatement, however, can be viewed as a signal of strength. As many real estate sectors are improving, REITs are showing a better outlook for 2012 and 2013. The following REITs are showing strength in improving earnings and/or increased dividends in 2012.

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) operates as a commercial real estate finance company in the United States. It originates, acquires, invests in, and manages performing commercial first mortgage loans, commercial mortgage-backed securities, mezzanine financings, and other commercial real estate-related debt investments.

Apollo Commercial is a commercial real estate finance company that is managed and advised by ACREFI Management, LLC, a indirect subsidiary of Apollo Global Management, LLC (NYSE:APO). ARI reported net income of $9.09 million or 43 cents per diluted share for fiscal 2012 Q1, compared with $5.18 million or 29 cents seen in the same quarter the previous year.

ARI reported operating earnings of $8.8 million, or 42 cents per share, for the three months ended March 31, 2012, compared with $5 million, or 29 cents per share, for the three months ended March 31, 2011. ARI declared a quarterly cash dividend of $0.40 per common share of beneficial interest. Based on ARI's common stock closing price of $16.01, the annualized dividend represents a 10.04% yield. ARI has an equity summary score of 9.4 out of 10 for a VERY Bullish outlook.

RLJ Lodging Trust (NYSE:RLJ) is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels. RLJ's portfolio consists of 141 hotels in 20 states and the District of Columbia, with more than 20,600 rooms. RJL is rebounding from the downturn in the lodging industry.

RJL had an EPS Growth (Last Qrtr vs. Same Qrtr Prior Year) of 60% with a projected increase in EPS next year of 86.67%. RJL declared a quarterly cash dividend of $0.165 per common share of beneficial interest, a 10% increase over the previous quarter. Based on RJL's common stock closing price of $17.83, the annualized dividend represents a 3.75% yield. RJL has an equity summary score of 8.5 out of 10 for a Bullish outlook.

Extra Space Storage Inc. (NYSE:EXR) is a fully integrated, self-administered and self-managed real estate investment trust that acquires, develops and operates self-storage facilities. EXR is up 15% year to date as it increased its 2012 outlook. EXR raised its 2012 FFO to $1.40 - 1.46 per share compared to $1.23 in 2011. EXR's average growth rate during the last 5 years was 11.3% per year.

EXR declared a quarterly cash dividend of $0.20 per common share of beneficial interest, a 43% increase over the previous quarter. Based on its common stock closing price of $28.13, the annualized dividend represents a 2.87% yield. EXR has an equity summary score of 7.7 out of 10 for a Bullish outlook.

Colony Financial, Inc. (NYSE:CLNY) is a real estate finance and investment company that is focused primarily on acquiring and originating commercial real estate loans and real estate-related debt at attractive risk-adjusted returns. CLNY increased core earnings, a non-GAAP financial measure, to $15.5 million, or $0.47 per basic and diluted share, from $7.4 million in the first quarter of 2011. Net income attributable to common stockholders increased to $12.1 million, or $0.37 per basic and diluted share, from $7.4 million in the first quarter of 2011.

CLNY has a projected increase in EPS next year of 12.28%. CLNY declared and paid a first quarter dividend of $0.34 per share of common stock, up from$0.32 per share in the first quarter last year. Based on its common stock closing price of $16.70, the annualized dividend represents a 8.19% yield. CLNY has an equity summary score of 8.0 out of 10 for a Bullish outlook.

Click to enlarge

Source: REITs With Improving Earnings And Increased Dividends