19 US REITs forecast to boost dividends in Q2

Analysts forecast dividend payments based on companies' prior payment histories, news, guidance, financial metrics estimates, debt levels, capital expense and other considerations. The forecasts are paired with confidence levels that gauge the relative certainty of those predictions. For more information on S&P Global Market Intelligence's dividend forecasting product, email dividendsupport@spglobal.com.

Nineteen publicly traded US-based real estate investment trusts are projected to increase their dividend payouts in the second quarter, according to S&P Global Market Intelligence forecasts.

One REIT already announced a cut on its quarterly cash distribution, while the remaining 120 public REITs included in the analysis are forecast to maintain their dividend payout over the quarter.

Medalist Diversified REIT's payout doubles; Global Net Lease cuts dividends in Q2

Medalist Diversified REIT Inc. said April 8 that it will double its regular quarterly cash distribution to 2 cents per share. In its recent Form 8-K filing, the diversified REIT said it was able to reinstate its dividend in the prior quarter and double that this time around because of streamlined costs and improved operational performance.

Hotel landlord Summit Hotel Properties Inc. said May 1 that it will raise its quarterly dividends by 33.3% to 8 cents per share. In its recent earnings release, the company highlighted its strong first-quarter financial results, posting a 9.8% growth in adjusted EBITDA and a 14% growth in its adjusted funds from operations.

"Hotel EBITDA margins expanded 80 basis points from the first quarter of last year driven by strong cost controls that led to a decrease in operating expenses on a per occupied room basis year-over-year," President and CEO Jonathan Stanner said, adding that the recent dividend hike "reflects the confidence we have in our operating results and the durability of our cash flows."

Analysts forecast that ground lease-oriented Safehold Inc. may increase its dividend by an estimated 8.0% to 19.12 cents per share. Self-storage REIT National Storage Affiliates Trust is expected to increase its dividend by 7.1% to 60 cents per share, while multifamily-focused Independence Realty Trust Inc. is forecast to raise its dividend to 17 pence per share, a rise of 6.3%, by the end of the second quarter.

Diversified REIT Global Net Lease said April 1 that it will slash its quarterly cash distributions by roughly 22.3% to 27.5 cents per share.

During a Feb. 28 earnings call, co-CEO and director Edward Michael Weil said the company's near-term strategic approach includes a planned reduction of the annual dividend from $1.42 to $1.10 per share. Weil said this would increase the amount of annualized cash by $74 million, which would help reduce leverage.

"This reflects the company's continued commitment to strengthening its balance sheet while maintaining a disciplined dividend policy," Weil said.

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Over 85% of US REITs to retain their current dividends

The majority, 85.7%, of the US REIT industry is expected to maintain the regular cash dividends during the second quarter.

The sole outlet center REIT, Tanger Inc., confirmed April 10 that it will raise its quarterly dividends by 5.8% to 27.5 cents per share.

Manufactured home REIT UMH Properties Inc. on April 1 announced a 4.9% increase to its quarterly dividend to 21.5 cents per share.

Diversified REIT Broadstone Net Lease Inc., healthcare REIT Community Healthcare Trust Inc. and farmland REIT Gladstone Land Corp. have already announced increases in their dividends for the second quarter.