Offices and yields: REIT with a dividend of 6.85%

Exactly three decades after going public, this American real estate trust is one of the stable dividend payers in the office sector. It retains investors with a quarterly payout of USD 0.50 per share, which at the current share price of around USD 29 means an attractive annual yield of around 6.85%. The payout has been consistent since 1994, including during periods of economic turmoil such as the COVID-19 pandemic. The payout ratio is typically kept between 65-75% of FFO, which leaves room to cover dividends even when yields fall.

In the first quarter of 2025, the company generated net income of $0.91 per share and its FFO was $0.83. Highlights include a 21% increase in effective rent over the average of the past five quarters and the $138 million acquisition of Advance Auto Parts Tower in Raleigh. The portfolio continues to be shaped by a clear strategy - replacing older assets with higher quality, better leased buildings. The total value of development projects exceeds $470 million,…