This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

REIT Has Excel-lent Chance of Raising Dividends

The new Excel Trust has over three decades of shopping center investment experience as evidenced by the tenured senior management team including founder Sabin, President and COO Spencer Plumb --16 years; CFO and Treasurer Jim Nakagawa -- 19 years; CIO and SVP Mark Burton and SVP and General Counsel Eric Ottesen -- 18 years.

Excel-lent Results

Excel Trust reported that its 2012 adjusted funds from operations for the quarter was $8.5 million, or 20 cents per diluted share and for the year of $28.6 million, or 78 cents per diluted share (5% increase year over year). During 2012 the company acquired $440 million in properties and surpassed the year with $1 billion in total assets owned.

In a recent press release Excel Chairman and CEO Gary Sabin commented:
"2012 was transformational for Excel Trust in several respects. By acquiring $440 million in quality properties, our asset base surpassed $1.1 billion and our portfolio now exceeds 5.5 million square feet. We lowered our cost of debt by improving our credit facility and anticipate beginning discussions with the rating agencies in order to position the Company to access the unsecured debt markets. These are important milestones for the Company and we are well on our way to accomplishing the goals we set at the time of our IPO a little over two and half years ago."

Excel's Board of Directors recently declared a first quarter 2013 cash dividend of 17 cents per share compared to a cash dividend of 16.25 cents per share for the previous quarter, to be paid on April 15 to shareholders of record as of March 29. Excel Trust's common shares are trading at $13.65 and the current dividend yield is 4.98%.

Another option is to consider Excel Trust 8.125% Series (EXL.PB) stock cumulative and payable quarterly at the rate of 8.125% per annum of its liquidation preference, which is equivalent to $2.03125 per annum per share.

The Excel-lent Target

Excel has a unique investment strategy of acquiring off-market transactions at higher going-in yields (cap rates) with strong net operating income upside. Excel Trust looks like an excel-lent REIT to own. Since mid-November shares have increased by more than 20% while the company returned more than 23% during the same period. The company has a current market capitalization of $639 million and shares are trading at $13.65. My target price is $14.00.

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EXL $15.84 0.00%
KIM $24.71 0.00%
ROIC $17.15 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs