LONDON, UK / ACCESSWIRE / March 23, 2018 / Active-Investors has a free review on BRT Apartments Corp. (NYSE: BRT) ("BRT") following the Company's announcement that it will begin trading ex-dividend on March 26, 2018. In order to capture the dividend payout, interested investors must purchase the stock a day prior (excluding weekend) to the ex-dividend date, that is by latest at the end of the trading session on March 23, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on BRT:
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On March 13, 2018, BRT announced that its Board of Directors declared a quarterly dividend on the Company's common stock of $0.20 per share, representing an increase of $0.02 per share, or approximately 11.1%. The dividend is payable April 06, 2018, to stockholders of record on March 27, 2018.
BRT's indicated dividend represents a yield of 6.90%, which is substantially higher than the average dividend yield of 3.73% for the financial sector.
BRT has a dividend payout ratio of 94.1%, which indicates that the Company distributes approximately $0.94 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
BRT's trailing twelve months earnings were $0.29 per share compared to the Company's annualized dividend of $0.80 per share. One of the primary reasons for the difference between earnings and annualized dividend is that BRT is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, for the quarter ended December 31, 2017, BRT's net income attributable to common stockholders was $6.4 million, or $0.45 per diluted share, compared to net income of $15.8 million, or $1.13 per diluted share, for the three months ended December 31, 2016.
On the other hand, for the quarter ended December 31, 2017, BRT's FFO surged 42.9% to $0.20 per diluted share from $0.14 per diluted share in the three months ended December 31, 2016. The Company's adjusted Funds from Operations, (AFFO) for the reported quarter grew 23.8% to $0.26 per fully diluted share from $0.21 per fully diluted share, in the prior year's corresponding period. BRT's AFFO number indicates that the Company should be able to comfortably cover its dividend payout.
Recent Development for BRT
On March 01, 2018, BRT announced the sale of The Apartments at Venue, located in Valley, Alabama, in which the Company held a 61% joint venture equity interest. The 618-unit property was sold for a gross sales price of $51.0 million and a gain of approximately $9.8 million. BRT's share of this gain, after giving effect to non-controlling interests of approximately $5.3 million, will be approximately $4.5 million, and will be recognized in Q2 FY18. The Company anticipates recycling a portion of sales proceeds into a new acquisition in the coming months.
Stock Performance Snapshot
March 22, 2018 - At Thursday's closing bell, BRT Apartments' stock was slightly down 0.68%, ending the trading session at $11.76.
Volume traded for the day: 31.45 thousand shares.
Stock performance in the last month – up 12.64%; previous three-month period – up 3.70%; past six-month period – up 11.15%; and last twelve-month period – up 43.94%
After yesterday's close, BRT Apartments' market cap was at $167.23 million.
Price to Earnings (P/E) ratio was at 40.69.
The stock has a dividend yield of 6.80%.
The stock is part of the Financial sector, categorized under the Mortgage Investment industry.
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