In tune with its efforts to enhance stockholders' return,
Parkway Properties Inc.
) hiked its quarterly cash dividend by 25% sequentially to 18.75
cents per share from 15 cents paid earlier. The new dividend will
be paid by this Real Estate Investment Trust (REIT) on Dec 26,
2013 to shareholders of record as of Dec 12, 2013. Parkway is a
steady dividend payer and the current dividend marks the
company's 109th consecutive quarterly dividend to its
HOST HOTEL&RSRT (HST): Free Stock Analysis
KIMCO REALTY CO (KIM): Free Stock Analysis
PARKWAY PPTY (PKY): Free Stock Analysis
SL GREEN REALTY (SLG): Free Stock Analysis
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Dividends & REITs
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 to shareholders.
A steady dividend payout is in line with Parkway's long-term
strategy to provide attractive risk-adjusted returns to its
stockholders. The announced quarterly dividend rate at this REIT
equates to an annualized rate of common stock dividend of 75
cents per share, resulting in a yield of 4.37% based on the
closing price of Parkway's stock on Nov 12.
As a matter of fact, Parkway continues to maintain a strong and
flexible balance sheet. Its debt-to-total market capitalization
was 41.3% as of Sep 30, 2013. For the quarter, the company had
interest and fixed charge coverage ratios of 3.4x and 2.8x,
With low funds from operations (FFO) payout ratio of 60.0% as of
Sep 30, 2013, Parkway has adequate room to enhance its dividend
rate going forward. Moreover, as of Sep 30, 2013, the company had
cash and cash equivalents worth $42.5 million and we believe that
the company has adequate cash to provide optimum shareholder
Parkway is currently focused on repositioning its office
portfolio and aiming for expansion in key Sunbelt markets across
the U.S. Recently, the company acquired 77.5% stake in 7000
Central Park, which is an 18-story, 415,000 square foot, Class A
office tower located in the Central Perimeter of Atlanta. Also,
it completed the sale of Carmel Crossing, which is a 326,000
square foot office complex in Charlotte, North Carolina.
Hence, with strong fundamentals and opportunistic acquisitions,
we believe that the company is well poised to maintain its growth
curves and simultaneously reward shareholders with steadily
In addition to Parkway, some other REITs have also increased
their dividends in recent times. Concurrent with its
third-quarter 2013 earnings release,
SL Green Realty Corp.
) increased its quarterly dividend by 52% to 50 cents from 33
cents paid in the prior quarter while
Kimco Realty Corporation
) hiked its quarterly dividend rate by 7.1% to 22.5 cents per
share. In Sep 2013
Host Hotels & Resorts Inc.
) also made a 9.1% sequential raise in its quarterly cash
dividend to 12 cents per share.
Parkway currently carries a Zacks Rank #3 (Hold).