Core Viewpoint - The current environment presents a favorable opportunity for investing in REITs, with many offering higher-than-usual yields and inflation under control, potentially leading to stable or declining interest rates [1] Group 1: Dividend Safety Importance - Dividend safety is critical for REITs as a cut in dividends can lead to a significant drop in share prices, causing investors to incur losses [2] - Investors should avoid "mousetrap" REITs, which may appear attractive due to high yields but often indicate underlying financial issues [2] Group 2: Dividend Safety Scores - Seeking Alpha Premium provides a Dividend Safety score, where a higher score indicates a lower likelihood of a dividend cut within the next 12 months [3][4] - Companies with a Dividend Safety grade of A+ can afford to pay out more cash income to shareholders, while those in lower grades may be retaining earnings for expansion [4] Group 3: Yield Considerations - With U.S. treasuries yielding approximately 4.25%, REITs need to offer at least a 5.25% yield to be considered attractive to income investors [5] - The average REIT yield is currently below the no-risk rate, making many REITs less appealing unless their stock prices are expected to rise significantly [5] Group 4: REITs in the Danger Zone - As of the latest data, there are 22 equity REITs with yields over 5.25% that have been rated in the Danger Zone for Dividend Safety [6] - The article highlights seven REITs with a Dividend Safety grade of F, indicating a high risk of imminent dividend cuts [6] Group 5: Specific REIT Analysis - Global Net Lease (GNL) has a high yield of over 12% but faces significant financial challenges, including a 65% debt ratio and a projected decline in FFO/share of -38.7% [7][8] - Clipper Realty (CLPR) has a debt ratio of 95% and is expected to see a -40% decline in FFO/share this year, raising concerns about its dividend sustainability [9][10] - Global Medical REIT (GMRE) has maintained its dividend historically but faces a -9.8% decline in FFO this year, putting its dividend at risk [11][12] - Easterly Government Properties (DEA) has a forecasted FFO/share decline of -10.2% and a concerning payout ratio, indicating potential dividend issues [13][14] - Healthcare Realty (HR) has a low interest coverage ratio of 0.20 and is expected to see an -8.3% decline in FFO, raising red flags about its dividend safety [15][16] - Postal Realty Trust (PSTL) has a TTM payout ratio exceeding 800% and is expected to see a -7.3% decline in FFO/share, indicating significant risk [17][18] - Crown Castle (CCI) has a high debt-to-equity ratio of 520% and is projected to see a -14.5% decline in FFO/share, despite a history of dividend growth [19][20] Group 6: Conclusion on Dividend Safety - A grade of F in Dividend Safety suggests a 40% chance of a dividend cut within the next year, prompting investors to reconsider their positions in these REITs [21]

The second-quarter reporting cycle is underway, and investors can be lured by the profits of companies that have already released their quarterly figures. However, rather than adding the stock later to your portfolio, accumulating the ones poised to beat estimates can generate higher gains. This is because an earnings beat usually serves as a catalyst, raising investors’ confidence in the stock and resulting in price appreciation. This is likely to be reflected in the earnings releases of Simon Property Gro ...

ST-art Armada Hoffler Properties, Inc. (NYSE:AHH) is a relatively small-cap real estate investment trust, or REIT, with a market cap of just below $1 billion. AHH is classified as a diversified REIT due to its exposure to several property types such as office, retail, and residential. While having a mix of different real estate segments in a portfolio is not that uncommon, what is quite unique about AHH is that it is a vertically integrated enterprise providing also general construction and development ...

VIRGINIA BEACH, Va., July 09, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE:AHH) announces that Stifel Financial Corp. (NYSE:SF), a premier wealth management and investment banking firm, has leased 35,000 square feet of prime office space within the prestigious Wills Wharf building, located within their mixed-use Harbor Point community on the Baltimore waterfront. The Company's over one million square feet of office space at Harbor Point is 98% leased; representing the continued demand for companies to loca ...

VIRGINIA BEACH, Va., July 09, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) announces that Stifel Financial Corp. (NYSE: SF), a premier wealth management and investment banking firm, has leased 35,000 square feet of prime office space within the prestigious Wills Wharf building, located within their mixed-use Harbor Point community on the Baltimore waterfront. The Company’s over one million square feet of office space at Harbor Point is 98% leased; representing the continued demand for companies to lo ...

VIRGINIA BEACH, Va., July 08, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) will report its earnings for the quarter ending June 30, 2024 at approximately 4:00 p.m. Eastern on Wednesday, August 7, 2024. At 8:30 a.m. Eastern on Thursday, August 8, 2024, senior management will host a conference call and webcast to discuss earnings and other information. To listen to the call, dial (+1) 800-549-8228 (toll-free dial-in number) or (+1) 646-564-2877 (toll dial-in number). The conference ID is 76550. The con ...

VIRGINIA BEACH, Va., July 08, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) will report its earnings for the quarter ending June 30, 2024 at approximately 4:00 p.m. Eastern on Wednesday, August 7, 2024. At 8:30 a.m. Eastern on Thursday, August 8, 2024, senior management will host a conference call and webcast to discuss earnings and other information. To listen to the call, dial (+1) 800-549-8228 (toll-free dial-in number) or (+1) 646-564-2877 (toll dial-in number). The conference ID is 76550. The con ...

VIRGINIA BEACH, Va., June 13, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) announced that its Board of Directors declared the cash dividend of $0.205 per common share. The second quarter dividend will be paid in cash on July 5, 2024, to stockholders of record on June 26, 2024. The Board of Directors also declared a cash dividend of $0.421875 per share on its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock payable on July 15, 2024, to stockholders of record on July 1, 2024. About Armada ...

VIRGINIA BEACH, Va., June 13, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) announced that its Board of Directors declared the cash dividend of $0.205 per common share. The second quarter dividend will be paid in cash on July 5, 2024, to stockholders of record on June 26, 2024. The Board of Directors also declared a cash dividend of $0.421875 per share on its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock payable on July 15, 2024, to stockholders of record on July 1, 2024. About Armada ...

buzbuzzer Armada Hoffler Properties, Inc. (NYSE:AHH), incorporated in 2012 and headquartered in Virginia Beach, VA, is a REIT that owns, acquires, develops, and leases a diversified portfolio of office, retail, and multifamily properties in the U.S. Although the performance hasn't been spectacular, the market outlook is positive and the company is well-positioned to take advantage of any macro improvement. The REIT is also conservative in its use of leverage and poses strong liquidity, which also provid ...