One Liberty Properties: A REIT With A Tempting Yield, But Too Many Red Flags To Buy
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One Liberty Properties is transitioning to an industrial REIT, but faces challenges with weak AFFO growth, high dividend payout ratio, and significant leverage, raising concerns about dividend sustainability.
January 29, 2025 | 11:00 am
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One Liberty Properties is transitioning to a fully industrial REIT, with 72% of rental income from industrial properties. However, weak AFFO growth, a high dividend payout ratio, and significant leverage raise concerns about dividend sustainability.
The transition to an industrial REIT is positive, but the weak AFFO growth and high dividend payout ratio suggest potential financial instability. The high debt-to-assets ratio and leverage compared to competitors further exacerbate these concerns, likely leading to negative short-term price impact.
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