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 (LXP - Free Report) , holds a Zacks #3 Rank that translates into a short- term Hold rating.
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.