Parkway Properties, Inc. (PKY), a real estate investment trust (:REIT), recently increased its quarterly dividend by 50% to 11.25 cents per share or 45 cents on an annualized basis.The dividend is payable on September 26, 2012 to shareholders of record on September 12.
The company has been paying uninterrupted dividends to its shareholders. The current dividend represents the 104th consecutive quarterly payout by Parkway.
A steady dividend payout facilitates the long term strategy of Parkway to provide risk- adjusted returns to its shareholders. Solid dividend payouts are arguably the best enticement for REIT investors as U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividend to shareholders.
Earlier, in the second quarter 2012, Parkway declared a cash dividend of 7.5 cents per share or 30 cents on an annualized basis. The dividend was paid on June 27, 2012 and represented a payout of approximately 20.0% of recurring FFO for the quarter.
Parkway owns office properties in the high growth submarkets in the Sunbelt region of the United States. As of August 8, 2012, the company had interest in 39 office properties located in nine states, with an aggregate of approximately 10.3 million square feet of leasable space. The primary focus of the company is to aggressively lease its current portfolio while pursuing high quality assets and target investments that will generate durable cash flows.
Parkway currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock. One of its competitors, Brandywine Realty Trust (BDN) also holds a Zacks# 3 Rank.Read the Full Research Report on PKY
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