Select Income REIT Hikes Distribution
Real estate investment trusts (REITs) aren’t known for their fast dividend growth, but one company seems to be proving the skeptics wrong.
On Monday, Select Income REIT (NASDAQ:SIR) announced a quarterly cash distribution of $0.51 per common share. This represents a two percent increase from the current distribution. The dividend will be paid on August 18 to shareholders of record on July 22. (Source: “Select Income REITs Raises Quarterly Dividend on Common Shares,” Select Income REIT, July 12, 2016.)
This announcement is the latest sign of strength for the dividend giant. In the first quarter of 2016, Select Income’s normalized funds from operations per share increased 5.7% year-over-year, with same property cash basis net operating income up 1.8% year-over-year.
In the quarter, the company also executed leases for 480,000 square feet for rents that were 13.9% higher than previous rents, with 15.8 years of weighted average lease term. (Source: “Select Income REIT Announces First Quarter 2016 Results,” Select Income REIT, April 26, 2016.)
This has been a profitable formula for shareholders. Since Select Income went public in March 2012, the company has raised its distribution five times. With the latest payout hike, Select Income units now yield 7.5% annually.
The company is scheduled to report its second-quarter earnings later this month. With a solid portfolio and efficient operations, Select Income REIT could have more good news for income investors.
Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners
Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:
5 Dividend Stocks to Own Forever
This is an entirely free service. No credit card required. You can opt-out at anytime.
We hate spam as much as you do.