9 US REITs, 2 Canadian REITs announce dividend hikes in August

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.

Nine publicly traded real estate investment trusts based in the US announced increases to their regular dividend payments in August. Two Canadian REITs also disclosed higher dividends during the same month.

The number of US REITs that declared higher dividends in the first eight months of 2024 totaled 59, while the year-to-date total for Canadian REITs was six as of the end of August, according to data compiled by S&P Global Market Intelligence.

RLJ Lodging leads dividend growth

Hotel landlord RLJ Lodging Trust announced the biggest dividend hike in August, boosting its quarterly cash distribution 50% to 15 cents per share on Aug. 1.

"[W]e were active on multiple fronts including, acquiring a high-quality boutique lifestyle hotel in Denver, progressing on our 2024 conversions, and repurchasing shares while increasing our quarterly dividend," RLJ Lodging President and CEO Leslie Hale said.

Trailing behind the hotel REIT was multifamily-focused Veris Residential Inc., raising its quarterly dividend 16.7% to 7 cents per share on Aug. 5.

Two other REITs posted double-digit hikes in their cash payouts during the month. Industrial REIT EastGroup Properties Inc. upped its quarterly dividend by 10.2% to $1.40 per share on Aug. 23, while information storage-focused Iron Mountain Inc. increased its quarterly cash distribution 10.0% to 71.5 cents per share on Aug. 1.

"Our business model is delivering strong revenue performance, resulting in top tier growth in adjusted funds from operations. This is in line with our long-term plan to increase the dividend alongside growth in AFFO per share," said Iron Mountain President and CEO William Meaney.

Five other REITs announced higher dividends in August, including industrial REIT Terreno Realty Corp. with an 8.9% increase and advertising-focused Lamar Advertising Co. with a 7.7% hike. Regional mall landlord Simon Property Group Inc. raised its dividend by 2.5%, single tenant REIT Alpine Income Property Trust Inc. by 1.8% and shopping center-focused Federal Realty Investment Trust by 0.9%.

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In Canada, multifamily REIT BSR REIT boosted its regular monthly distribution by 7.9% to 4.67 US cents per unit on Aug. 15 from 4.33 US cents per unit announced the previous month.

Another multifamily-focused REIT, Canadian Apartment Properties REIT, announced a 3.4% increase in its regular monthly distribution to 12.5 Canadian cents per unit on Aug. 7.

Over 65% of industrial US REITs lift dividends

The dividend hike announcements in August have brought the year-to-date total to 59 US REITs, representing 38.3% of the entire US REIT industry.

On a sector basis, eight industrial REITs posted dividend hikes thus far in 2024, or 66.7% of the entire industrial REIT segment, the highest percentage of any property sector.

Residential-focused REITs came in second at about 57.9% of the sector, representing 11 dividend hikes year to date. The retail segment followed, accounting for 57.7% of REITs boosting their dividends so far in the year.

Of the six Canadian REITs that have declared dividend hikes so far, four came from the residential sector and two from the retail sector.