, a real estate investment trust (REIT), recently increased its
quarterly dividend by 8.0% to 7 cents per share. The new dividend
is payable on October 15, 2012 to shareholders of record on
CAPLEASE INC (LSE): Free Stock Analysis Report
LEXINGTON PPTY (LXP): Free Stock Analysis
VITAMIN SHOPPE (VSI): Free Stock Analysis
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The dividend hike reflects the company's successful execution of
its 2012 business plan to date. In the last eight years, the
company has paid uninterrupted dividends to its shareholders, while
increasing it three times. The current dividend rate affirms a
yield of 5.5%.
The appropriate utilization of investment opportunities and
portfolio restructuring programs has paved the way for the company
to achieve its objective. Recently, CapLease entered into a
build-to-suit arrangement with
Vitamin Shoppe, Inc. (
to boost the ongoing expansion of its build-to-suit business.
Management remains upbeat regarding the portfolio expansion and
strong cash flow generation for the remainder of 2012.
A steady dividend payout facilitates the long-term strategy of
CapLease to provide risk-adjusted returns to its shareholders.
Solid dividend payouts are arguably the best enticement for REIT
investors, as U.S. laws require REITs to distribute 90% annual
taxable income in the form of dividends to shareholders.
CapLease is focused on financing for commercial real estate that
are net leased primarily to single tenants with investment grade or
near-investment grade credit ratings. It provides private and
corporate owners of net lease real estate with equity, debt, and
mezzanine financing option. As of August 2012, CapLease has cash on
hand worth $27 million and about $45 million of additional
borrowing capacity under the revolving credit facility.
CapLease currently carries a Zacks #3 Rank, which translates into a
short-term Hold rating. We also have a long-term Neutral
recommendation on the stock. One of its competitors,
Lexington Realty Trust (
holds a Zacks #1 Rank (a short-term Strong Buy rating).
Note: Funds from operations, a widely used metric to gauge the
performance of REITs, is obtained after adding depreciation and
amortization and other non-cash expenses to net income.