7.0% Covered Dividend, But About Fairly Valued

This company is a promising small-cap REIT. The REIT has grown core FFO at a fast clip since its IPO in 2013. The company, however, has a very narrow margin of dividend safety. Its dividend stream costs investors ~13.5x 2018e core FFO. Shares are currently priced at a 7.0 percent yield.

Independence Realty Trust, Inc. (IRT) is a promising REIT play for investors with an above-average risk tolerance and a desire for high, recurring dividend income. Independence Realty Trust has grown its funds from operations at a fast clip in the last several years, thanks to the company's aggressive stance on acquisitions. The commercial property REIT covers its dividend with FFO but continues to have a narrow margin of dividend safety. An investment in Independence Realty Trust yields 7.0 percent.

Source: Seeking Alpha

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