EdR Raises Dividend - Analyst Blog
16 Luglio 2013 - 5:00PM
Zacks
In tune with its efforts to enhance stockholders’ return,
Education Realty Trust Inc. (EDR) (commonly known
as “EdR”) raised its quarterly cash dividend sequentially by 10% to
11 cents per share from 10 cents. The new dividend will be paid on
Aug 15, 2013 to shareholders of record as of Jul 31, 2013.
EdR has a consistent track record of increasing shareholder wealth.
Notably, in the third quarter of 2012, the company had increased
its annual dividend by 43% to 40 cents from 28 cents per share paid
earlier. Prior to that, in the third quarter of 2011, the company
had increased its annual dividend by 40% to 28 cents from 20 cents
per share.
Notably, a steady dividend payout is in line with the long-term
strategy of the company to provide attractive risk-adjusted returns
to its stockholders. The announced quarterly dividend rate at this
real estate investment trust (REIT) equates to an annualized rate
of common stock dividend of 44 cents per share, resulting in a
yield of over 4.2% based on the closing price of EdR’s stock on Jul
15.
As a matter of fact, EdR maintains a conservative capital structure
with well-staggered debt maturities. As of Mar 31, 2013, the
company had cash and cash equivalents of $14.5 million and $278.4
million available on its unsecured revolving credit facility.
EdR is one of the leading owners, developers and managers of
collegiate housing in the U.S. The company owns or manages 65
communities in 24 states with around 36,000 beds. The ideal
acquisition targets of the company are generally located in markets
that have stable or increasing collegiate populations and high
barriers to entry.
Recently, the company disclosed the addition of 92 apartments next
to the University of Connecticut. The company is planning the
development of a third phase at The Oaks on The Square in Storrs
Center, beside the university. The development is aimed at
strengthening EdR's market dominance while solidifying its presence
at the University of Connecticut.
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 rising
dividends.
Notably, a number of REIT firms have raised their quarterly
dividend payouts in recent months. These firms include Host
Hotels & Resorts Inc. (HST), Post Properties
Inc. (PPS) and Alexandria Real Estate Equities
Inc. (ARE).
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 in the form of dividends to
shareholders.
EdR currently carries a Zacks Rank #3 (Hold).
ALEXANDRIA REAL (ARE): Free Stock Analysis Report
EDUCATION RLTY (EDR): Free Stock Analysis Report
HOST HOTEL&RSRT (HST): Free Stock Analysis Report
POST PPTYS INC (PPS): Free Stock Analysis Report
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