6 US REITs increase dividend payouts in April

This Data Dispatch is updated monthly. The analysis includes publicly traded real estate investment trusts covered by S&P Global Market Intelligence that are based in the US or Canada and trade on the NYSE, Nasdaq, NYSE American, Toronto Stock Exchange or TSX Venture Exchange.

Six publicly traded real estate investment trusts based in the US announced boosts to their regular dividend payouts in April, raising the total of US REITs that have declared higher dividends in the first four months of 2024 to 39, according to data compiled by S&P Global Market Intelligence.

Medalist Diversified REIT doubles dividends in April

Diversified REIT Medalist Diversified REIT Inc. announced the largest dividend increase in April, doubling its quarterly cash payout to 2 cents per share April 8.

This dividend hike announcement came a few months after Medalist Diversified REIT reinstated its common stock dividend Jan. 24.

In the diversified REIT's recent Form 8-K filing, the company attributed the recent dividend increase and reinstatement of dividend in the prior quarter to the REIT's improved operational performance and streamlined costs.

During the same month, outlet center Tanger Inc. also upped its quarterly cash distribution by 5.8% to 27.5 cents per share April 10.

"With the foundation of our well-positioned balance sheet and the strength of our operating platform, we have the liquidity and flexibility to grow our well-covered dividend and return capital to our shareholders," Tanger Inc. President & CEO Stephen Yalof said.

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Manufactured home-focused UMH Properties Inc. followed closely, as it boosted its quarterly dividend by 4.9% to 21.5 cents per share April 1.

In the company’s earnings call May 3, UMH Properties President and CEO Samuel Landy noted that the company has raised its dividend four times since 2020 by an aggregate amount of 14 cents, or a 19% increase.

"The strength of our operating results and our earnings growth in 2023 positioned us to raise our common stock dividend for a fourth consecutive year," Landy said. He noted that the company raised the dividend for the year by 4 cents per share, translating to an annualized dividend of 86 cents per share.

Three other REITs also declared dividends during the month of April, including single tenant-focused Agree Realty Corp., which raised its monthly distribution by 1.2% to 25 cents per share; healthcare REIT Community Healthcare Trust Inc., which increased its quarterly dividend by 0.5% to 46 cents per share; and farmland-focused Gladstone Land Corp., which boosted its monthly payout by 0.2% to 4.66 cents per share.

Half of residential US REITs boost dividends

Year to date, 39 US REITs have announced dividend increases, accounting for about 25.2% of the entire US REIT industry.

On a sector basis, 10 residential REITs in the US posted higher dividend payouts thus far in 2024, accounting for half of the entire residential REIT segment, the highest proportion of any property sector.

Industrial-focused REITs came in second at about 41.7% of the sector, representing 5 dividend hikes year to date. The specialty segment followed, with 33.3% of REITs in the sector boosting their dividends so far this year.

Of the two Canadian REITs that declared dividend hikes so far, one came from the retail sector and another from the residential sector.