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Forget Rate Hike, Special Dividends Pouring in from REITs
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If you are an investor in the REIT industry and have been bogged down by the FOMC meeting outcome and rate hike moves, then this is the time to think again. This is because a number of REITs, like General Growth Properties, Inc. , Highwoods Properties, Inc. (HIW - Free Report) and Kilroy Realty Corp. (KRC - Free Report) , have come up with their special dividend announcements, which is surely a good news for income-seeking investors.
Specifically, General Growth has declared a special cash dividend of 26 cents per share which is payable on Jan 27, 2017, to shareholders of record as of Dec 27, 2016. This is in addition to the fourth-quarter cash dividend of 22 cents, which is slated to be paid on Jan 6, 2017, to stockholders of record as of Dec 15, 2016.
Usually, special dividends are paid by REITs on capital gains from the sale of assets to avoid paying taxes. Notably, solid dividend payouts remain arguably the biggest enticement for REIT investors as the U.S. law requires these companies to distribute at least 90% of their taxable income to shareholders, annually, in the form of dividends.
The other REIT – Highwoods Properties – came up with a special dividend announcement of 80 cents per share, which is payable on Jan 10, 2017 to shareholders of record as of Dec 27, 2016. This is primarily the outcome of the distribution of the taxable capital gains related to the sales of its Country Club Plaza assets earlier in 2016. Highwoods also pays a quarterly common stock cash dividend of 42.5 cents per share.
Moreover, Kilroy Realty announced a special cash dividend of $1.90 per share, which is a due to the distribution of taxable income, mainly associated with gains from the sale of real estate property in 2016. The company will pay the dividend on Jan 13, 2017 to shareholders of record as of Dec 30, 2016. Kilroy Realty will also pay a regular quarterly dividend of 37.5 cents per share.
Moreover, bringing in good news for investors, particularly the income seeking ones, recently a number of REITs declared their dividend hikes. Among them are Mid-America Apartment Communities, Inc. (MAA - Free Report) and SL Green Realty Corp. (SLG - Free Report) , which announced a 6% and 7.6% hike in their dividend payouts, respectively.
Year to date, shares of Highwoods Properties have logged in a return of 15.1%, while Kilroy Realty’s shares ascended 19.4% against the Zacks categorized REIT – Equity Trust – Other industry’s gain of just 4.7%. However, shares of General Growth fell 3.5% against around 2.0% increase of the Zacks categorized REIT – Equity Trust – Retail industry.
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Forget Rate Hike, Special Dividends Pouring in from REITs
If you are an investor in the REIT industry and have been bogged down by the FOMC meeting outcome and rate hike moves, then this is the time to think again. This is because a number of REITs, like General Growth Properties, Inc. , Highwoods Properties, Inc. (HIW - Free Report) and Kilroy Realty Corp. (KRC - Free Report) , have come up with their special dividend announcements, which is surely a good news for income-seeking investors.
Specifically, General Growth has declared a special cash dividend of 26 cents per share which is payable on Jan 27, 2017, to shareholders of record as of Dec 27, 2016. This is in addition to the fourth-quarter cash dividend of 22 cents, which is slated to be paid on Jan 6, 2017, to stockholders of record as of Dec 15, 2016.
Usually, special dividends are paid by REITs on capital gains from the sale of assets to avoid paying taxes. Notably, solid dividend payouts remain arguably the biggest enticement for REIT investors as the U.S. law requires these companies to distribute at least 90% of their taxable income to shareholders, annually, in the form of dividends.
The other REIT – Highwoods Properties – came up with a special dividend announcement of 80 cents per share, which is payable on Jan 10, 2017 to shareholders of record as of Dec 27, 2016. This is primarily the outcome of the distribution of the taxable capital gains related to the sales of its Country Club Plaza assets earlier in 2016. Highwoods also pays a quarterly common stock cash dividend of 42.5 cents per share.
Moreover, Kilroy Realty announced a special cash dividend of $1.90 per share, which is a due to the distribution of taxable income, mainly associated with gains from the sale of real estate property in 2016. The company will pay the dividend on Jan 13, 2017 to shareholders of record as of Dec 30, 2016. Kilroy Realty will also pay a regular quarterly dividend of 37.5 cents per share.
Moreover, bringing in good news for investors, particularly the income seeking ones, recently a number of REITs declared their dividend hikes. Among them are Mid-America Apartment Communities, Inc. (MAA - Free Report) and SL Green Realty Corp. (SLG - Free Report) , which announced a 6% and 7.6% hike in their dividend payouts, respectively.
Currently, Highwoods Properties and Kilroy Realty carry a carry a Zacks Rank #3 (Hold). However, General Growth has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Year to date, shares of Highwoods Properties have logged in a return of 15.1%, while Kilroy Realty’s shares ascended 19.4% against the Zacks categorized REIT – Equity Trust – Other industry’s gain of just 4.7%. However, shares of General Growth fell 3.5% against around 2.0% increase of the Zacks categorized REIT – Equity Trust – Retail industry.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>