Shares of high yielding REITs have been relatively flat in August. The Vanguard REIT ETF (VNQ), which tracks the performance of an index that measures the performance of publicly traded equity REITs, is up over 14 percent this year, nearly double the Dow Jones gain of 8 percent over the same period. Investors have looked to mortgage REITs to take advantage of the recovering U.S. housing market. Mortgage REITs do not directly invest in real estate but invest in the mortgages on real estate properties.
While the housing market has gone from bad to less bad, these REITs have just declared higher dividends for their investors. Each of these REITs has high dividend yields over 10% with a Bullish outlook.
Newcastle Investment Corp. (NYSE: NCT) announced that its Board of Directors has declared a quarterly dividend of $0.22 per common share for the third quarter of 2012, representing a 10% increase from the prior quarter’s dividend of $0.20per common share. The dividend is payable on October 31, 2012 to shareholders of record on October 1, 2012. Newcastle has a current dividend yield of 10.3%.
Newcastle Investment announced that it has completed the sale of 100% of its interests in CDO X in connection with the liquidation and termination of CDO X. Newcastle received $130 million for $89.75 million face amount of subordinated notes and all of its equity in CDO X. The sale and resulting deconsolidation of CDO X from the Company’s balance sheet will eliminate the impact of CDO X’s negative net book value and generate an approximately $200 million gain for the third quarter.
Newcastle has an equity summary score of 8.7 out of 10 for a Bullish outlook. First Call analysts’ consensus has a Buy rating of 1.7. Newcastle has a 12-month price target of $8.75.
Newcastle Investment (operated as a REIT) focuses on investing in and actively managing opportunistic investments in real estate related assets. The Company primarily invests in two distinct areas: (1) Residential Servicing and Securities and (2) Commercial Real Estate Debt and Other Assets.
The Board of Directors of CreXus Investment Corp. (NYSE: CXS) declared the third quarter 2012 common stock cash dividend of $0.32 per common share. This dividend is payable October 25, 2012 to common shareholders of record on October 1, 2012. The ex-dividend date is September 27, 2012.
This is an 18.5% increase from the prior dividend of $0.27. CreXus Investment has a current dividend yield of 10.2%. EPS is projected to increase 21% in 2013 and 18% in 2014.
CreXus has an equity summary score of 7.6 out of 10 for a Bullish outlook. First Call analysts’ consensus has a Buy rating of 2.3. CreXus has a 12-month price target of $12.50.
CreXus (operated as a REIT) acquires, manages and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial real property, commercial mortgage-backed securities and other commercial and residential real estate-related assets.
New York Mortgage Trust, Inc. (NYMT) announced that its Board of Directors declared a regular quarterly cash dividend of $0.27 per share on shares of its common stock for the quarter ending September 30, 2012. The dividend will be payable on October 25, 2012 to common stockholders of record as of September 28, 2012. New York Mortgage has a current dividend yield of 14.5%.
New York Mortgage has completed an underwritten registered public offering of 10,000,000 shares of common stock at $6.73 per share. New York Mortgage also granted the underwriters an option to purchase up to an additional 1,500,000 shares of common stock. The proceeds will be used to purchase more assets.
New York Mortgage has an equity summary score of 9.0 out of 10 for a Bullish outlook. First Call analysts’ consensus has a Buy rating of 2.0. New York Mortgage has a 12-month price target of $8.25.
New York Mortgage invests in mortgage-related and financial assets and targets multi-family CMBS and Agency RMBS, including Agency RMBS consisting of adjustable-rate and hybrid adjustable-rate RMBS and Agency IOs consisting of interest only and inverse interest only RMBS that represent the right to the interest component of the cash flow from a pool of mortgage loans.