One Liberty Property Inc
), a real estate investment trust (REIT), has recently increased
its quarterly dividend from 33 cents to 35 cents per share. This
translates to a 6.1% increase from the prior-year dividend
payout. The dividend is payable on January 4, 2013 to
shareholders of record on December 27, 2012.
One Liberty 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 $15.4 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.
One Liberty reported third quarter 2012 fund from operations
(FFO) of $6.07 million or 41 cents per share, compared with $5.29
million or 36 cents in the year-earlier quarter.
Based in Great Neck, New York, One Liberty acquires, owns and
manages a geographically diversified portfolio of retail,
industrial, office and other properties under long-term leases in
the United States. The company's property portfolio includes
retail furniture stores, as well as industrial, office, flex,
health and fitness, and other properties.
One Liberty currently has Zacks #4 Rank, which translates into a
short-term Sell rating. We have a long-term Neutral
recommendation on the stock. One of its competitors,
Lexington Realty Trust
), holds a Zacks #3 Rank that translates into a short- term Hold
Note: Fund from operations, 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.
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