Post Properties Inc.
) announced a 32% hike in its quarterly cash dividend rate,
reflecting decent growth and profitability. The company will now
pay a dividend of 33 cents per share, up from 25 cents paid in
the prior quarter. The increased dividend will be paid on Jul 15,
2013 to stockholders of record on Jun 28.
The announced quarterly dividend rate at this real estate
investment trust (REIT) equates to an annualized rate of common
stock dividend of $1.32 per share, resulting in a yield of over
2.6% based on the closing price of Post Properties' stock on May
As a matter of fact, Post Properties has a strong balance sheet,
which provides it with the financial flexibility to pursue
accretive acquisitions and dividend payouts. This augurs well for
its long-term growth.
As of Apr 26, 2013, the company had cash and cash equivalents of
$113.4 million and no outstanding borrowings, and letters of
credit totaling $0.6 million under its combined $330 million
unsecured lines of credit. Notably, the company has no principal
debt maturities in either 2013 or 2014.
Moreover, last month, Post Properties came up with impressive
first-quarter results. The company reported funds from operations
(FFO) of 74 cents per share, beating the Zacks Consensus Estimate
by 5.7% and the year-ago quarter FFO per share by 15.6%.
Results reflect the ongoing momentum in apartment market
fundamentals, the company's solid capital position and attractive
return potential of its new projects in development. Hence, with
strong quarterly results, the company is well poised to maintain
its growth curves and simultaneously benefit the shareholders
with steadily rising dividends.
In addition to Post Properties, recently
Plum Creek Timber Company Inc.
) announced a 5% hike in its quarterly cash dividend rate to 44
cents per share, based on its bullish expectations of persistent
growth of long-term, sustainable cash flow.
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 shareholders.
Post Properties currently carries a Zacks Rank #3 (Hold).
However, two other REIT stocks that are performing well and
deserve a look includes
Select Income REIT
) that carries a Zacks Rank #1 (Strong Buy) and
The Macerich Company
), which has a Zacks Rank #2 (Buy).
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
MACERICH CO (MAC): Free Stock Analysis Report
PLUM CREEK TMBR (PCL): Free Stock Analysis
POST PPTYS INC (PPS): Free Stock Analysis
SELECT INCOME (SIR): Free Stock Analysis
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