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Acadia Realty Hikes Dividend, Announces Special Dividend

Ushering in good news for shareholders, Acadia Realty TrustAKR , a retail real estate investment trust (REIT), announced a 4.2% hike in its quarterly dividend rate to 25 cents from 24 cents paid earlier. The company also revealed a special cash dividend of 25 cents for its shareholders. Acadia will pay both the dividends on Jan 15, 2016 to shareholders of record as on Dec 31, 2015.

Reflecting positive market sentiments, Acadia's shares gained 1.27% on the NYSE during yesterday's trading session.

Based on the increased rate, the annualized dividend comes to $1.00 per share, resulting in an annualized yield of about 3.06%, considering Acadia's closing price of $32.63 on Nov 11.

Acadia has been consistent in enhancing its shareholders' wealth through dividend payouts. In fact, this REIT has increased its regular quarterly dividend by around 40% since 2012. Moreover, this marks the second consecutive year of the company offering a special dividend to its shareholders.

Last year, the company had paid a special dividend of 30 cents per share for profitable sales in its Fund assets. This year, it has decided to pay 25 cents to reflect the gains reaped from the recycling of Funds' capital.

Acadia's strategy of acquiring high-quality street, urban and dense suburban properties has helped the company more than double the size of its core portfolio over the last five years.

Having reported a positive earnings surprise of 11.4% in the last quarter with an expected earnings growth rate of 9.2% for the next five years, Acadia remains well poised to capitalize on the promising prospects of the industry and benefit its shareholders accordingly.

Solid dividend payouts are arguably the biggest enticement for REIT investors. Apart from Acadia, a number of other REITs have announced dividend hikes in recent times. These include DCT Industrial Trust Inc. DCT , Kimco Realty Corporation KIM and Simon Property Group Inc. SPG . While DCT announced a 3.6% sequential hike in its dividend to 29 cents, Kimco declared a 6.3% sequential increase to 25.5 cents. Simon Property revealed a 3.2% sequential hike to $1.60.

Acadia Realty Trust currently has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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