Ushering in good news for its shareholders, industrial real
estate investment trust (REIT)
) announced an 18% increase in its quarterly dividend rate. The
company will now pay a dividend of 33 cents per share on its
common stock, compared with 28 cents paid in the prior quarter.
The increased dividend will be paid on Mar 31, 2014 to
stockholders of record on Mar 12.
APARTMENT INVT (AIV): Free Stock Analysis
AVALONBAY CMMTY (AVB): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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Shares gained 11 cents during the regular trading session on the
NYSE yesterday. The new dividend rate results in an annualized
yield of 3.2% based on the company's closing price of $41.02 on
Going forward, we believe that amid a larger customer base, rise
in e-Commerce application and supply chain consolidation, demand
for Class-A facilities will continue to rise.
However, new supply is low and in this environment Prologis
stands to benefit since it has the capacity to offer modern
distribution facilities in strategic infill locations. The
company is currently capitalizing on such growth opportunities
across the globe.
In fact, efficiencies from enhanced scale, development
initiatives and recovering rents set the ground for growth for
this REIT. The company also came up with better-than-expected
results in fourth-quarter 2013.
A number of REIT stocks have also raised their dividend in recent
times. Among them are
Simon Property Group Inc.
Avalonbay Communities Inc.
Apartment Investment and Management Company
) (better known as Aimco).
Concurrent with its earnings release, Simon Property increased
its quarterly dividend by nearly 4.17% to $1.25 per share from
$1.20 paid in the prior quarter. AvalonBay enhanced its quarterly
dividend rate by 8.4% to $1.16 per share from $1.07 per share
while Aimco announced an 8.3% hike in its quarterly dividend rate
to 26 cents per share from 24 cents paid in the prior quarter.
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.
Prologis currently carries a Zacks Rank #3 (Hold).