Earlier this week,
Campus Crest Communities Inc.
) - a real estate investment trust (REIT) - announced a 3.1% hike
in its annual cash dividend rate. The company will now pay a
dividend of 66 cents per share annually compared with the prior
rate of 64 cents.
It will become effective from first quarter 2013 and the
quarterly dividend rate will amount to 16.5 cents. The
increased dividend will be paid on Apr 10, 2013 to stockholders
of record on Mar 27.
Based on the closing price of $12.08 on Jan 31, 2013, the
proposed annual dividend affirms a yield of 5.5%. It is backed by
the company's solid operating platform and strategic measures to
help improve its top line.
Campus Crest, which currently owns interests in 39 operating
student housing properties containing approximately 20,884 beds,
plans to deliver 6 projects containing approximately 3,564 beds
in the third quarter of 2013. We believe that with its decent
fundamentals, the company is well poised to maintain its growth
curve and concurrently add to shareholders wealth through steady
Campus Crest is a developer, builder, owner and manager of
high-quality, purpose-built student housing properties located
close to campuses in targeted U.S. markets.
The company rents student housing properties, offers student
housing services and provides construction, development and
With this dividend hike, Campus Crest joined a host of REITs that
have recently increased their dividend payments. This includes
Vornado Realty Trust
) as well as lodging REIT,
RLJ Lodging Trust
) that have raised their dividend in the last two months.
U.S. law requires REIT companies to distribute 90% of their
annual taxable income in the form of dividends to the
shareholders and therefore, solid dividend payouts are a
significant attraction for REIT investors. Also, Campus Crest
currently carries a Zacks Rank #2 (Buy).
CAMPUS CREST CM (CCG): Free Stock Analysis
DDR CORP (DDR): Free Stock Analysis Report
RLJ LODGING TR (RLJ): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
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