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 (GGP) yields 2.3%, Realty Income (O) yields 4.7%, and National Retail Properties (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 (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.