REITs continue to hike dividends amid falling stock prices, increases set to continue

REITs continued to hike dividends in September, as falling stock prices discourage investors, and the increases are set to continue.

Eight U.S.-based REITs and one Canadian REIT raised their dividends in the month of September, according to data from S&P Global Market Intelligence.

VICI Properties (VICI ) raised its quarterly dividend by 8.3%, while STORE Capital (STOR ) hiked the dividend by 6.5%.

Kilroy Realty (KRC ) had the third biggest dividend hike of 3.8%, while Phillips Edison & Company (PECO ) raised the dividend by 3.7%.

Innovative Industrial Properties (IIPR ) increased its quarterly dividend by 2.9%, American Tower (AMT ) by 2.8%, Realty Income (O ) hiked its monthly dividend by 0.2% and W. P. Carey (WPC ) increased the quarterly dividend by 0.2% during September.

Meanwhile, Canadian REIT First Capital Real Estate Investment Trust (OTC:FCXXF) doubled its monthly distribution to $0.072.

The real estate investment trusts continued to bleed in Q3 with FTSE Nareit All Equity REITs index falling 11.1% and Real Estate Select Sector SPDR ETF (XLRE ) falling 11.87%, while the broader index S&P 500 fell just 5.28%.

However, REITs’ balance sheets are the strongest they’ve ever been. Investors only have dividends to count on.

Notably, with the FFO growth significantly outpacing dividend growth, total dividend payout ratios are near historic-lows. This implies dividend hikes are set to continue.

A total of 83 U.S. REITs, or about 51.6% of the country’s entire REIT industry, have hiked dividends year-to-date through September. Meanwhile, nine Canadian REITs have announced dividend increases year-to-date, the S&P data showed.

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