Most REITs increased dividends during 2013, with additional increases now in place for 2014. Improved profitability and steady FFO growth gives REIT managements confidence that dividends can be maintained.
Health Care REITs offer attractive yields of 5.4% on average, down slightly since December 2013 as Health Care REITs rallied. Industrial REITs now yield 4.3%, while Office REITs yield 4.0% on average. Yields for Residential REITs are at 3.6% as Residential REITs stabilized. Retail REITs yield 3.9% on average, while Specialty REITs yield 4.3%. Hotel REITs are still the lowest yielding sector at 2.8%. Financial REITs offer income investors the highest yield, at 8.0% on average.
Variability in yield for each sector is greater than shown here. Average yield for all REITs as of March, 2014 is 4.3%.
REIT Growth and Income Monitor covers 123 REITs with total market cap of $685 billion, as of the end
of March, 2014. Pending merger of BRE Properties with Essex Properties Trust and takeover of Brookfield Office Properties by Brookfield Property Partners LP will slightly reduce the number of names and market cap.
Coverage of Data Center REITs was expanded again as of the end of February, 2014. REIT Growth and Income Monitor added coverage of pending REIT conversion Equinix during February, 2014. Previous additions to coverage of Data Center REITs included CoreSite Realty, CyrusOne and QTS Realty Trust. Through the end of 2013, both Digital Realty Trust and DuPont Fabros Technology were included with Office REITs.
Specialty REITs now show total market cap of $149 billion, including $21 billion market cap for Data Center REITs.
|Note: This report is for information only. It is not a solicitation or an offer to buy or sell securities of any company mentioned herein. Atlantis Investment Co., Inc. does not make markets in the securities mentioned herein and does not have investment banking relationships with any company mentioned herein. The views expressed are those of the authors, and are based on a diligent review of available information. The report is based on information which is believed to be accurate, but we do not guarantee its accuracy or completeness. Atlantis Investment Co., Inc., its officers, employees and stockholders (and members of their families) and its customers may have long/short positions or holdings in the securities mentioned, and they may at any time hold, increase or decrease these positions. Neither the authors of this report nor any related household members are officers, directors, or advisory board members of any company mentioned herein. Atlantis Investment Co., Inc. or any of its employees do not own shares equal to 1% or more of any company mentioned herein. Copyright 2014 Atlantis Investment Co., Inc.|