Federal Realty Investment Trust recently revealed the approval by its Board of Trustees of an increase in the regular dividend rate on its common shares to $1.00 per share per quarter resulting in an annualized dividend rate of $4.00 per share. The quarterly cash dividend will be payable on October 16, 2017 to common shareholders of record as of September 22, 2017. Federal Realty is the only real estate investment trust in the US to have increased its common dividend every year for the last 50 years, the company revealed in a prepared statement. The Trust is considered a “Dividend Aristocrat” by the S&P 500, a term used to describe S&P 500 companies that have increased their dividend payout for 25 consecutive years or more.
Federal Realty is one of only 22 Dividend Aristocrats to have 50+ consecutive years of dividend increases. The compound annual growth rate of the dividend increases over that 50 years is in excess of 7%.
“The ability to raise the dividend on common shares every single year since 1967 is the strongest testament I can think of to reflect both the quality and resiliency of our real estate portfolio and the sustainability, consistency and strength of our balance sheet and business plan,” says Donald C. Wood, President and Chief Executive Officer. “When you think about the volatility in interest rates, economic conditions and retailer peaks and valleys over that half century time period, the annual consistency of an increasing cash flow stream distributed to investors that has been generated by this platform is all the more impressive.”
In other news, the REIT also recently revealed that it has formed a new joint venture with Primestor Development Inc., the Los Angeles based owner and developer of retail properties serving Southern California. The trust will hold an approximate 90% interest in the venture and the venture will be seeded with a 100% interest in five dominant community shopping centers, plus one center under redevelopment and a 25% minority interest in a seventh shopping center. The seven properties total more than 1.3 million square feet on 114 acres of urban land. The Trust’s investment in the venture is approximately $345 million.