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.
Innovative Industrial Properties (IIPR
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
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.