Dividend Increases: December 3-7, 2018 (Part 1: Real Estate Sector)

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Includes: ADC, AMT, ARE, BFS, COR, DEI, DLR, EXR, MAA, WPC
by: FerdiS
Summary

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

In the past week, 28 companies declared dividend increases.

Part 1 of this article covers dividend increases in the Real Estate sector. See Part 2 and Part 3 for dividend increases in the other sectors.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis. Companies that regularly raise their dividend payments show confidence in future earnings growth potential.

I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:

  • Dividend Yield ≥ 1.0%
  • Market cap ≥ $1 billion
  • No stocks that are being acquired
  • No Over-The-Counter or Pink Sheet stocks

This week, 28 companies that declared dividend increases passed these screens. Part 1 covers dividend increases from stocks in the Real Estate sector. See Part 2 and Part 3 for dividend increases from stocks in the other sectors.

The following table provides a summary of increases by Real Estate sector stocks.

The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).

Summary of Dividend Increases: December 3-7, 2018

Previous Post: Dividend Increases: November 26-30, 2018

CoreSite Realty (COR)

COR is a real estate investment trust that owns, acquires, constructs, and operates data centers in the United States. The company offers data center and interconnection solutions, as well as colocation and interconnection solutions for networks, cloud, and information technology service providers. COR was founded in 2010 and is headquartered in Denver, Colorado.

On Thursday, December 6, the company increased its quarterly dividend by 6.80% to $1.10 per share. The dividend is payable January 15, with an ex-dividend date of December 28.

American Tower (AMT)

AMT is a real estate investment trust that owns, develops, and operates multi-tenant communications sites across the globe. Customers include wireless service providers, radio and television broadcast companies, wireless data and data providers, government agencies, and municipalities. AMT was founded in 1995 and is headquartered in Boston, Massachusetts.

The company announced an increase of its quarterly dividend of 6.33% to 84¢ per share. The stock will trade ex-dividend on December 26, and shareholders can expect to receive the new dividend on January 14.

Alexandria Real Estate Equities (ARE)

ARE is a self-administered and self-managed REIT engaged in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. Its properties consist of buildings containing scientific research and development laboratories, and other improvements. ARE was founded in 1993 and is based in Pasadena, California.

Recently, the board of directors of ARE declared a quarterly dividend of 97¢ per share. The new dividend represents an increase of 4.30%. The dividend is payable on January 15 to shareholders of record on December 31. The ex-dividend date is December 28.

Mid-America Apartment Communities (MAA)

Founded in 1977 and based in Memphis, Tennessee, MAA is a self-administered and self-managed REIT that focuses on the acquisition, selective development, redevelopment, and management of multifamily homes throughout the Southeastern and Southwestern regions of the United States. MAA has ownership interest in more than 100,000 operating apartment homes in the United States.

The company's board of directors approved an increase in the quarterly dividend of 4.07% to 96¢ per share. The quarterly dividend will be paid on January 31 to shareholders of record on January 15. The ex-dividend date is January 14.

Douglas Emmett (DEI)

Headquartered in Santa Monica, California, DEI is a REIT that owns and operates office and multifamily properties in Southern California and in Honolulu, Hawaii. DEI acquires, develops, owns, and manages office real estate and multifamily real estate in high barrier-to-entry submarkets that exhibit strong economic characteristics and inherent supply constraints.

On Thursday, December 6, DEI increased its quarterly dividend to 26¢ per share, an increase of 4.00%. The ex-dividend date is December 28 and the dividend will be paid on January 15 to shareholders of record on December 31.

Agree Realty (ADC)

Founded in 1971 and headquartered in Farmington Hills, Michigan, ADC is an integrated REIT focused on the ownership, acquisition, development, and management of retail properties in the United States. ADC's business objective is to generate consistent shareholder returns by investing in a diversified portfolio of retail properties net leased to industry tenants.

Recently, the board of directors of ADC declared a quarterly dividend of 56¢ per share. The new dividend represents an increase of 2.78%. The dividend is payable on January 4 to shareholders of record on December 21. The stock will trade ex-dividend on December 20.

Saul Centers (BFS)

BFS is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. The company operates and manages about 60 properties, including community and neighborhood shopping centers and mixed-use properties, land and development properties. Over 85% of BFS’ operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

The company increased its quarterly dividend by 1.92%, from 52¢ per share to 53¢ per share. BFS will trade ex-dividend on January 16. The dividend is payable on January 31, to shareholders of record on January 17.

WP Carey (WPC)

With an enterprise value of approximately $17 billion, WPC ranks among the largest diversified net lease REITs. The company invests in high-quality, single-tenant industrial, warehouse, office, and retail properties subject to long-term leases with built-in rent escalators. Its properties are located primarily in the U.S. and Northern and Western Europe.

Recently, WPC increased its quarterly dividend to $1.03 per share, an increase of 0.49% over the prior dividend of $1.03 per share. The stock will trade ex-dividend on December 28, and shareholders can expect to receive the new dividend on January 15.

Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Below, I'm including charts from F.A.S.T. Graphs for three of this week's dividend raisers, COR, AMT, and DEI.

In these charts, the black line represents the share price, and the blue line represents the calculated P/AFFO multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the AFFO growth rate achieved over the timeframe in question. (The AFFO Growth Rate represents the slope of the orange line in the chart).

COR's price line (black) is at the primary valuation line (orange) and at the stock's normal P/AFFO ratio (blue). The stock is trading at about fair value. An investment in COR in October 2010 would have returned 26.3% on an annualized basis (with dividends included).

AMT's price line is at the stock's normal P/AFFO ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in AMT in January 2009 would have returned 19.9% on an annualized basis (with dividends included).

DEI's price line is above the primary valuation line and above the stock's normal P/AFFO ratio. The stock is trading at a premium to fair value. An investment in DEI in January 2009 would have returned 12.9% on an annualized basis (with dividends included).

Upcoming Ex-Dividend Dates

As a bonus, here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.

The table is sorted by Ticker, and as before, Next Div is annualized. Please note that the table presents the ex-dividend dates of stocks in the Real Estate sector. See Part 2 and Part 3 of this article for ex-dividend dates of stocks in other sectors.

Summary of Upcoming Ex-Dividend Dates: Dividend Increases: December 11-24, 2018

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

American Assets Trust

AAT

2.65%

$42.20

8

4.60%

$1.12

12/12

12/27

Agree Realty

ADC

3.59%

$61.91

6

4.80%

$2.22

12/20

01/04

Armada Hoffler Properties

AHH

5.27%

$15.19

6

N/A

$0.80

12/24

01/03

Crown Castle International

CCI

3.89%

$115.76

5

N/A

$4.50

12/13

12/31

Camden Property Trust

CPT

3.31%

$92.93

8

6.70%

$3.08

12/14

01/17

Digital Realty Trust

DLR

3.49%

$115.72

14

5.00%

$4.04

12/13

01/15

Extra Space Storage

EXR

3.49%

$98.70

9

31.60%

$3.44

12/13

12/31

Gaming and Leisure Properties

GLPI

7.83%

$34.72

5

N/A

$2.72

12/13

12/28

Getty Realty

GTY

4.47%

$31.30

7

17.50%

$1.40

12/19

01/04

Iron Mountain

IRM

7.18%

$34.05

9

16.20%

$2.44

12/14

01/03

Lamar Advertising

LAMR

5.01%

$73.43

5

N/A

$3.68

12/14

12/28

Medical Properties Trust

MPW

5.89%

$16.97

5

3.50%

$1.00

12/12

01/10

Prologis

PLD

2.87%

$66.84

5

9.50%

$1.92

12/17

12/31

PS Business Parks

PSB

2.99%

$140.57

5

14.10%

$4.20

12/11

12/27

QTS Realty Trust

QTS

4.05%

$40.47

5

N/A

$1.64

12/20

01/08

Retail Opportunity Investments

ROIC

4.35%

$17.94

9

7.20%

$0.78

12/13

12/28

Taubman Centers

TCO

4.91%

$53.39

9

6.20%

$2.62

12/14

12/31

Terreno Realty

TRNO

2.48%

$38.64

8

13.30%

$0.96

12/17

01/11

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Disclosure: I am/we are long DLR, EXR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.