Host Hotels & Resorts Inc.
) - a lodging real estate investment trust (REIT) - announced a
9.1% sequential hike in its quarterly cash dividend rate. The
company will now pay a dividend of 12 cents per share compared
with 11 cents paid in the prior quarter. The increased dividend
will be paid on Oct 15, 2013 to stockholders of record on Sep 30,
Host Hotels has a strong balance sheet, which provides the
financial flexibility to aim at high-yielding acquisitions, high
ROI (return on investments) capital projects, steady dividend
payouts and share buybacks.
The company is making a concerted effort toward increasing
shareholders' wealth and accordingly, it has hiked its dividend
payout for the 11th consecutive time. Notably, a steady
dividend payout facilitates the long-term strategy of Host Hotels
to provide attractive risk-adjusted returns to its stockholders.
Aided by significant comparable properties' performance, this
leading lodging REIT reported second-quarter 2013 adjusted funds
from operations (FFO) per share of 45 cents, exceeding the
year-ago figure by 36.4% and the Zacks Consensus Estimate by
7.1%. Including certain non-recurring items, FFO was 39 cents per
share, up 25.8% year over year.
Host Hotels operates luxury and upper-upscale hotels across
hard-to-replicate areas, which have the potential for significant
capital appreciation. Moreover, with strong quarterly results,
the company is well poised to maintain its growth curves and
simultaneously benefit the shareholders with steadily rising
As a matter of fact, two other REIT firms have increased their
dividend payouts recently.
Alexandria Real Estate Equities Inc.
) announced a 5% hike in its quarterly cash dividend rate,
reflecting a dividend increase for the sixth consecutive quarter.
This REIT will now pay a dividend of 68 cents per share for
third-quarter 2013, up 3 cents from the prior-quarter
The other REIT -
EastGroup Properties Inc.
) - also announced a hike in its quarterly cash dividend
sequentially by 1.9% to 54 cents per share from 53 cents. The new
dividend will be paid on Sep 30, 2013 to shareholders of record
as of Sep 19, 2013. Notably, EastGroup has raised or maintained
its dividend for 21 consecutive years and hiked it for 18 years
within this period.
ALEXANDRIA REAL (ARE): Free Stock Analysis
EASTGROUP PPTYS (EGP): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
SOTHERLY HOTELS (SOHO): Get Free Report
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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 shareholders.
Host Hotels currently carries a Zacks Rank #3 (Hold). Another
REIT that is performing well and deserves a look is
Sotherly Hotels Inc.
), which carries a Zacks Rank #1 ( Strong Buy).
FFO, 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.