interrent's dividend growth
Interent is a reit that invests in residential properties and they do it quite well.It has a small dividend now of about $.20 and a yield of about 4.5%.But it's growth is quite substantial.Operating revenues have increased by about 30% for each of the last two years and it is on track to increase it by almost 30% again this year.It's debt to book value has fallen from 58%to 47% and it's shareholders equity has risen over this time period as well.It buys properties in good locations like Ottawa but are not top notch properties.Each new property gets additional suites added and the entire property gets renovated.
The net operating income increased by 28% this year to almost $10 million.The number of new suites increased by almost 30% over Q3 2012.However the more important figure is that distribuable income increased by 35% to $4.3 million.Cash distribution per unit increased by almost 40%.Interent increased it's dividend at the start of the year so it's payout ratio also rose to 60 % from 45%.Still a healthy ratio but too high for a dividend increase right away.But if their acquisitions continue and their renovations increase revenues, their operating revenues may increase again by 30% for 2014.If so then Interrent should be on track to raise their dividend by the third quarter of 2014.This will depend however on them raising new capital and probably raising their debt ratio.That or else a small secondary equity issue.Look for a new secured debenture issue in the first quarter of 2014.contact blogdaleupsome for advice on r.e.i.t s
The net operating income increased by 28% this year to almost $10 million.The number of new suites increased by almost 30% over Q3 2012.However the more important figure is that distribuable income increased by 35% to $4.3 million.Cash distribution per unit increased by almost 40%.Interent increased it's dividend at the start of the year so it's payout ratio also rose to 60 % from 45%.Still a healthy ratio but too high for a dividend increase right away.But if their acquisitions continue and their renovations increase revenues, their operating revenues may increase again by 30% for 2014.If so then Interrent should be on track to raise their dividend by the third quarter of 2014.This will depend however on them raising new capital and probably raising their debt ratio.That or else a small secondary equity issue.Look for a new secured debenture issue in the first quarter of 2014.contact blogdaleupsome for advice on r.e.i.t s
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