Link Real Estate Investment Trust's Dividend Analysis
Insights into Link Real Estate Investment Trust's Upcoming Dividend
Link Real Estate Investment Trust (LKREF) recently announced a dividend of $1.3 per share, payable on 2023-12-29, with the ex-dividend date set for 2023-11-20. 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 Link Real Estate Investment Trust's dividend performance and assess its sustainability.
What Does Link Real Estate Investment Trust Do?
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Link REIT is Asia's largest REIT, listed in 2005 to privatize retail assets held by the Hong Kong Housing Authority. It owns 154 properties and about 60,000 car park spaces. It expanded its investment mandate in 2014 to allow overseas acquisitions and has since acquired retail and office properties in China, as well as an office development project in Hong Kong. More recently, Link expanded its footprint to Sydney, Melbourne, London, and Singapore.
A Glimpse at Link Real Estate Investment Trust's Dividend History
Link Real Estate Investment Trust has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Link Real Estate Investment Trust's Dividend Yield and Growth
As of today, Link Real Estate Investment Trust currently has a 12-month trailing dividend yield of 6.97% and a 12-month forward dividend yield of 6.31%. This suggests an expectation of decrease dividend payments over the next 12 months. Over the past three years, Link Real Estate Investment Trust's annual dividend growth rate was 2.30%. Extended to a five-year horizon, this rate increased to 5.00% per year. And over the past decade, Link Real Estate Investment Trust's annual dividends per share growth rate stands at 8.60%.
Based on Link Real Estate Investment Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Link Real Estate Investment Trust stock as of today is approximately 8.90%.
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, Link Real Estate Investment Trust's dividend payout ratio is 0.00.
Link Real Estate Investment Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Link Real Estate Investment Trust's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Link Real Estate Investment Trust's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Link Real Estate Investment Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Link Real Estate Investment Trust's revenue has increased by approximately 3.20% per year on average, a rate that outperforms approximately 61.08% of global competitors.
Concluding Thoughts on Link Real Estate Investment Trust's Dividend Profile
Link Real Estate Investment Trust's consistent dividend payments, coupled with a solid dividend growth rate, present an attractive prospect for value investors. The company's prudent payout ratio and strong profitability rank underscore its ability to sustain and potentially grow dividends. With robust growth metrics painting a promising future outlook, Link Real Estate Investment Trust appears well-positioned to continue rewarding shareholders. As investors contemplate their next steps, they might ponder whether Link Real Estate Investment Trust's dividend attributes align with their investment strategy for income and growth. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
