These four small cap real estate investment trusts are paying dividends and recently hit new highs. Most of the price improvement is likely the result of the Federal Reserve Bank’s policy of lowering interest rates. How much longer this can benefit the sector is definitely a question.
Another question is the effect of Donald Trump attempting to fire Fed Chair Jerome Powell when the new President takes office on January 20, 2025. Trump has said he should be the person who sets interest rates rather than the Fed. A substantial change in the way rates are decided would affect dividend paying REITs, one way or the other.
4 Small Cap Rates Paying Dividends.
Corporate Defense Properties.
A Russell 2000 component, the market capitalization of this REIT is $7.29 billion. The dividend is 3.62%. From corporate headquarters in Columbia, Maryland, the company focuses on office spaces for government, defense and high technology operations.
InvenTrust Properties.
It’s a Russell 2000 component with a market cap is $2.38 billion. The company focuses on grocery properties and grocery-related assets. The dividend is 2.91%. InvenTrust is relatively lightly traded for an NYSE-listed stock with an average daily volume of 473,000 shares.
Tanger Factory Outlets.
This one is also a Russell 2000 component. The market cap of $3.88 billion. Based in Greensboro, North Carolina, this retail REIT invests in open air shopping centers and similar types of properties. Tanger Factory Outlet Centers pays a dividend of 3.07%. Average daily volume is 665,000 shares.
Vornado.
Market capitalization is $9.47 billion. The company specializes in office properties and in street retail, especially those in New York’s Manhattan borough. Vornado pays a dividend of 1.50%. Piper Sandler in early August upgraded its rating of the REIT from “underweight” to “neutral” with a price target of $30 (now exceeded).
iShares U. S. Real Estate ETF.
This diversified portfolio of 64 REITs includes a number of non-dividend payers but, for the most part, includes those who pay them. Nevertheless, you can see that this ETF hit its high in September and is not making it back up there as have the four REITs mentioned in this article.
No artificial intelligence was used in the writing of this article.
More analysis and commentary at johnnavin.substack.com.
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