Boston, MA 05/12/2014 (wallstreetpr) – The multifamily apartment operator and developer Post Properties Inc (NYSE:PPS) announced improvements in its quarterly dividend, the latest move by the REIT to return more value to the shareholders. The move also seems to be a strategic calculation to calm down its shareholders after the 1Q2014 profit decline sting.
The company announced a quarterly dividend of $0.40 per share for 2Q2014 on its common stock. The latest dividend is payable on July 15, and captures shareholders of record as of June 30. The new dividend reflects about 11 percent improvement from the previous dividend.
According to CEO Dave Stockert, the newly declared dividend reflected the improvement in the company and increased shareholder-orientation. The company looks to an annualized common stock dividend of $1.60 per share.
In addition to the common stock dividend, Post Properties Inc (NYSE:PPS) announced $1.0625 per share on Series A Preferred Stock. The Series A dividend is payable on June 30, to shareholders of record on June 16.
Lukewarm 1Q2014 performance
There was little to celebrate about Post Properties Inc (NYSE:PPS)’s 1Q2014 results. Though the company noted top-line improvement at 8.3 percent to $93.5 million in the quarter, bottom line lacked adequate support and declined more than 31 percent to $13.3 million in the quarter.
Shareholder orientation
Though profit in 1Q, declined the management provided reason for the decline and promised to improve the column in the balance of 2014. However, in addition to the promise, the management can be seen showing positive gesture to return big value to shareholder with the latest move to adjust quarterly dividend.
REITs are looking to strong perform in 2014 because of the high demand for office, retail and residential spaces coupled with the high prices. Post Properties Inc (NYSE:PPS) is better placed to benefit from the favorable REIT market because of its wide range of properties in upscale locations. The company’s focus on costs and expenses reduction should also support financial saving that can be channeled to back to investors through shares repurchase and dividend hikes.
