Kite Realty Group Trust's Dividend Analysis
Assessing the Sustainability of Kite Realty Group Trust's Upcoming Dividend
Kite Realty Group Trust (NYSE:KRG) recently announced a dividend of $0.25 per share, payable on 2024-01-12, with the ex-dividend date set for 2024-01-04. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Kite Realty Group Trust's dividend performance and assess its sustainability.
What Does Kite Realty Group Trust Do?
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Kite Realty Group Trust is a real estate investment trust that owns mainly community shopping centers concentrated in Indiana (39% of base rent), Florida (10.9%), Maryland (6.8%), New York (6%), North Carolina (5.4%) and Texas (25.7%). At year-end 2022, Kite Realty Group Trust owned interests in 183 retail operating properties and three commercial properties, representing 8.9 million of gross leasable area. It also had eight properties under development or redevelopment.
A Glimpse at Kite Realty Group Trust's Dividend History
Kite Realty Group Trust has maintained a consistent dividend payment record since 2004, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kite Realty Group Trust's Dividend Yield and Growth
As of today, Kite Realty Group Trust currently has a 12-month trailing dividend yield of 4.29% and a 12-month forward dividend yield of 4.45%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Kite Realty Group Trust's annual dividend growth rate was -11.80%. Extended to a five-year horizon, this rate increased to -11.20% per year. And over the past decade, Kite Realty Group Trust's annual dividends per share growth rate stands at -2.60%.
Based on Kite Realty Group Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Kite Realty Group Trust stock as of today is approximately 2.37%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Kite Realty Group Trust's dividend payout ratio is 5.65, which may suggest that the company's dividend may not be sustainable.
Kite Realty Group Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kite Realty Group Trust's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 3 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kite Realty Group Trust's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Kite Realty Group Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kite Realty Group Trust's revenue has increased by approximately -0.80% per year on average, a rate that underperforms approximately 60.98% of global competitors.
Engaging Conclusion
Considering Kite Realty Group Trust's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should weigh these factors carefully when evaluating the company's long-term dividend sustainability. With a fair profitability rank and growth outlook, there may be potential for future dividend stability, but the negative growth rates and payout ratio raise questions about the long-term viability of the current dividend levels. Will Kite Realty Group Trust's strategic initiatives and market position allow it to overcome these challenges and continue rewarding shareholders with sustainable dividends? That remains a critical question for value investors to ponder.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
