Glimcher Realty (GRT) is trading around $10.80 versus its 52-week high of $11.29, up 25% in the past 1-year. The stock yields 3.7%. An attractive dividend yield is an important incentive for investors to add REITs to their portfolio, as REITs are required to distribute at least 90% of their taxable income to shareholders. Other retail REITs in its peer group such as General Growth Properties (NYSE:GGP) yields 2.3%, Realty Income (NYSE:O) yields 4.7%, and National Retail Properties (NYSE:NNN) yields 5%.
Fundamental positives for Glimcher are: The company has maintained a strong occupancy level in the core mall portfolio of 94.7%, which is up 40 basis points from Q3-2011.
A strong retail environment has helped leasing activity, and sales within tenant stores. Year-to-date, leasing volume has been up 15% versus the same period last year. Even in a difficult economic, and consumer spending environment, store sales in its core malls have increased 8%.
Although leverage is high at 44.9% at the end of Q3-2012, it is a significant improvement from Q3-2011 of 54.2%. In terms of liquidity, the company has ample liquidity in the form of $100 million available on its credit line, which matures in 2014, and has a 1-year extension option.
Glimcher has a diversified tenant portfolio with only Limited Brands, and The Gap (NYSE:GPS) contributing more than 2% to the total rental income.
Similar to other retail REITs, some of the risks related to investing in Glimcher are possible tenant bankruptcies, and a change in consumer spending environment.
The chart below compares share performance over the past year. "D"s mark dividends paid. (click to enlarge)Tool provided by Kapitall.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.