3 REITs That Could Soon Hike Their Dividends

AI-generated source summary

The analysis focuses on three REITs: StorageVault (SVI.CA), First Industrial Realty Trust (FR), and HA Sustainable Infrastructure Capital (HASI). StorageVault is highlighted for its strong growth in asset base and its reinvestment of cash flow into growth, leading to a potential share price increase. Its low dividend yield is attributed to this reinvestment strategy, and the company is not officially structured as a REIT, allowing flexibility. The analysis suggests that as the company matures and faces less competition, it could increase its dividend payout ratio to 3-4%, aligning with peers and potentially boosting its stock price. First Industrial Realty Trust (FR) shows a strong track record of dividend growth, increasing by 13% annually, and is trading at approximately 20 times its FFO, which is considered reasonable. The company's internal growth prospects, driven by development of owned land, are expected to lead to further FFO per share growth. HASI (HA Sustainable Infrastructure Capital) is presented as a potential surprise to the market due to its growth in managed assets and fee income from managing capital. Despite a low dividend payout ratio, its strong growth in FFO per share, projected at 10% CAGR, and dividend per share growth, projected at 13% CAGR, suggest potential for future outperformance. The company's focus on renewable energy projects and its success in scaling its business are seen as positive indicators.

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