), a real estate investment trust (REIT), has recently increased
its quarterly dividend from 7 cents to 7.5 cents per share. This
translates to a 7.0% increase from the prior-quarter dividend
payout. The dividend is payable on January 15, 2013 to
shareholders of record on December 31, 2012.
CapLease has increased the overall dividend payout by over 15%
during 2012, including an 8% increase in the last quarter. The
dividend hike was primarily driven by the company's significant
progress in the last one-year period, including new investments
of over $165 million. The company is continuously improving its
portfolio and has positioned itself to raise dividends in a very
CapLease expects to distribute excess cash to shareholders
through the increased dividend and concurrently look to maintain
its cash flow for further reinvestments. Solid dividend payouts
are arguably the best enticement for REIT investors as U.S. law
requires REITs to distribute 90% of their annual taxable income
in the form of dividend to shareholders.
At the end of third quarter 2012, cash and cash equivalents stood
at $40.2 million. We believe that the company has enough cash to
provide optimum shareholder value. The company has a flexible
balance sheet and is well-positioned to take advantages of
investment opportunities in the future.
CapLease is focused on financing and investing in commercial real
estate that is 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.
CapLease currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. We have a long-term Neutral
recommendation on the stock. One of its competitors,
Lexington Realty Trust
) holds a Zacks #3 Rank.
CAPLEASE INC (LSE): Free Stock Analysis
LEXINGTON PPTY (LXP): Free Stock Analysis
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