Palm Beach, FL –January 4, 2022 – FinancialNewsMedia.com News Commentary – Experts are saying that real estate investment trusts (REITs) should finish 2021 as one of the stock market’s top performing sectors, barring a surprise late-year disaster. And investors positioned in the best REITs could be set up for a productive 2022. The main reason REITs remain so popular with investors year after year is the reliable strength of their dividends. Remember: REITs are required to pay out at least 90% of their taxable profits as dividends (in return for some generous tax breaks). And even after a year of big stock price gains, real estate stocks continue to offer impressive yields. The average yield on REITs is presently 2.9%, or more than twice the 1.3% average yield on the S&P 500. Many of the market’s best REITs deliver even more income. But there are other catalysts pointing specifically to strong REIT performance in 2022. A major growth driver is the strengthening U.S. economy, which is increasing occupancy rates and rents for real estate in the industrial, housing and shopping-center industries, among others. Active Companies in the markets today include Presidio Property Trust, Inc. (NASDAQ: SQFT), Medalist Diversified REIT, Inc. (NASDAQ: MDRR), Paramount Group, Inc. (NYSE: PGRE), EPR Properties (NYSE: EPR), Empire State Realty Trust, Inc. (NYSE: ESRT).
“As commercial activity and day-to-day life normalize, demand for commercial and residential real estate space will continue to recover,” says State Street Global Advisors. “Combined with higher rent inflation in 2022, this supports REIT dividend growth and potential valuation appreciation. Indeed, unlike most other businesses, real estate investment trusts typically benefit from inflation. That’s because of the structure of REIT leases, which allow frequent rent hikes, as well as rent increases linked to the consumer price index (CPI). Inflation also increases the worth of REIT assets, thus making their portfolios more valuable.”
Presidio Property Trust, Inc. (NASDAQ: SQFT) BREAKING NEWS: Presidio Property Trust Announces Special Warrant Dividend – Presidio Property Trust, Inc, an internally managed, diversified real estate investment trust (“REIT”), today announced the declaration of a special warrant dividend.
All holders of record of Presidio’s common stock and existing outstanding warrants as of January 14, 2022 will receive one warrant for each common share or existing warrant held. The warrant dividend is expected to be issued on or around January 24, 2022. These warrants will give the holder the right to purchase one share of Presidio common stock at $7.00 per share, for a period of five years. Should shareholders not convert the warrants during that holding period, the warrants will automatically convert to 1/10 of a common share at expiration, rounded down to the nearest number of whole shares.
“This special dividend reflects our appreciation for the support of our shareholders, as well as optimism about our future,” said Jack Heilbron, Chief Executive Officer and President of Presidio. “The innovative automatic conversion feature assures that warrant holders will be entitled to receive additional common shares of Presidio, subject to the warrant’s terms. We have applied for these warrants to trade on the Nasdaq Capital Market under the symbol SQFTW and expect trading to begin on or around January 24, 2022.”
The warrants and the shares of common stock issuable upon the exercise of the warrants will be registered on a registration statement on Form S-11 (File No. 333-260885) that was filed with the Securities and Exchange Commission and is expected to be declared effective on or around January 21, 2022.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of such securities under the securities laws of that state or jurisdiction. Any offer of securities covered by the registration statement will be made solely by means of a prospectus included in the registration statement. CONTINUED… To Read This Full Press Release for Presidio Property Trust Please Visit: https://presidiopt.com/press-releases/
Other recent developments in the real estate industries include:
Medalist Diversified REIT, Inc. (NASDAQ: MDRR) – board of directors of Medalist Diversified REIT, Inc. has recently approved a program that will allow management to purchase up to 500,000 shares of the Company’s common stock in the open market, up to a maximum price of $4.80 per share. This action will take place in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The company’s decision to repurchase its shares, as well as the timing of such repurchases will depend on a variety of factors that include the ongoing assessment of the Company’s capital needs, market conditions and the price of the Company’s common stock and other corporate considerations, all as determined by management. The repurchase program does not obligate the Company to acquire any particular amount of shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.
Thomas E. Messier, Chairman and Chief Executive Officer, said, “In addition to continuing to deploy capital for investment property acquisitions, we want to be able to buy back shares when our own financial position and market conditions permit. The Company’s decision to authorize a share repurchase program at this time should signal the conviction that our Board and management have in the Company’s strategy. While our primary emphasis will remain on continuing our strategy of growth through additional investment property acquisitions, we intend to be decisive when there are opportunities to enhance stockholder value and make good on our commitment to strengthen the Company’s capital structure.”
Paramount Group, Inc. (NYSE: PGRE) recently announced that it has refinanced its existing senior unsecured revolving credit facility with a new $750 million senior unsecured revolving credit facility that matures in March 2026, with two six-month extension options. The interest rate on the new facility is 115 basis points over the secured overnight financing rate (SOFR) with adjustments based on the term of advances, plus a facility fee of 20 basis points.
“The refinancing of this facility once again underscores the confidence leading financial institutions have in our platform,” said Wilbur Paes, Paramount’s Chief Operating Officer, Chief Financial Officer, and Treasurer. “Aside from providing us with ample liquidity and financial flexibility, the new facility is also linked to our industry-leading sustainability metrics and highlights our deep commitment to lowering our carbon-footprint.”
EPR Properties (NYSE: EPR) recently announced that its Board of Trustees has declared its monthly cash dividend to common shareholders. The dividend of $0.25 per common share is payable January 18, 2022 to shareholders of record on December 31, 2021. This dividend represents an annualized dividend of $3.00 per common share.
The Board of Trustees also declared quarterly dividends to preferred shareholders: 5.75% Series C Cumulative Convertible Preferred Shares (NYSE:EPRprC): The Company declared a dividend of $0.359375 per share payable January 18, 2022 to shareholders of record on December 31, 2021; 9.00% Series E Cumulative Convertible Preferred Shares (NYSE:EPRprE): The Company declared a dividend of $0.5625 per share payable January 18, 2022 to shareholders of record on December 31, 2021; and 5.75% Series G Cumulative Redeemable Preferred Shares (NYSE:EPRprG): The Company declared a dividend of $0.359375 per share payable January 18, 2022 to shareholders of record on December 31, 2021.
Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust with office and retail properties in Manhattan and the greater New York metropolitan area, recently announced that its Board of Directors has declared a dividend of $0.035 per share for the fourth quarter of 2021, payable to holders of the Company’s Class A common stock and Class B common stock and to holders of Empire State Realty OP, L.P.’s (“ESRO”) Series ES, Series 250 and Series 60 operating partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR operating partnership units.
The Board of Directors has declared a dividend of $0.15 per unit for the fourth quarter of 2021, payable to holders of Empire State Realty OP, L.P.’s (“ESRO”) Series 2014 Private Perpetual Preferred Units and a dividend of $0.175 per unit for the fourth quarter of 2021, payable to holders of ESRO’s Series 2019 Private Perpetual Preferred Units. The dividends will be payable in cash on December 31, 2021 to unitholders of record at the close of business on December 20, 2021.
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