Agree Realty Corporation
) recently announced a 2.5% hike in its quarterly cash dividend
rate. The company will now pay a dividend of 41 cents per share
for first quarter 2013, up from the prior-quarter dividend of 40
cents. The increased dividend will be paid on Apr 9, 2013 to
stockholders of record on Mar 29.
Agree Realty is focused on managing its capital conservatively
and in the fourth quarter of 2012, the company paid its 75th
consecutive cash dividend since its initial public offering.
Based on the current dividend rate, the annual dividend rate
comes to $1.64 per share, compared with the 2012 annual dividend
of $1.60 per share.
Agree Realty is mainly engaged in the acquisition and development
of single tenant properties net leased to industry leading retail
tenants. Currently, it owns and operates a portfolio of 113
properties, situated in 30 states and includes around 3.3 million
square feet of gross leasable space.
Moreover, recently, Agree Realty disclosed the acquisition of 3
single tenant assets leased to industry leading retailers. The
company shelled out $6.4 million for the acquisitions and the
properties include a Dollar General Market in Statham, Ga., an
AutoZone in North Las Vegas, Nev. and a Family Dollar in Memphis,
We believe that opportunistic acquisitions would help Agree
Realty enhance its portfolio quality, which in turn could be
accretive to its earnings going forward. In addition, it aims to
retain high-end tenants through long-term lease deals, thereby
guaranteeing a consistent source of income. As such, the company
is well poised to maintain its growth curves and simultaneously
benefit the shareholders with steadily rising dividends.
In addition to Agree Realty, many other REITs have raised their
dividends in the recent months. In January,
AvalonBay Communities Inc.
) hiked its dividend by 10.3% while in February,
Simon Property Group Inc.
) raised its dividend by 4.5% sequentially and
BRE Properties Inc.
) declared a 2.6% sequential hike in its quarterly cash dividend.
As a matter of fact, solid dividend payouts are arguably the
biggest attraction for REIT investors as the U.S. law requires
these companies to distribute 90% of their annual taxable income
in the form of dividends to the shareholders.
In addition, Agree Realty currently has a Zacks Rank #2 (Buy).
AGREE RLTY CORP (ADC): Free Stock Analysis
AVALONBAY CMMTY (AVB): Free Stock Analysis
BRE PROPERTIES (BRE): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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