Plaza Retail REIT

Plaza Retail REIT Delivers a 4% Dividend Raise

Dividend Raises

On November 9th, “Plaza Retail REIT (TSX: PLZ.UN) (“Plaza” or the “REIT”) today announced that its Board of Trustees has approved an increase in its annual distribution to unitholders to $0.27 per unit, representing a 3.8% increase.” (plaza.ca)

Before Net Increase After
Annual Dividend $0.26 $0.01 $0.27
Monthly Dividend $0.0217 $0.0008 $0.0225
Percentage Increase 3.85%

Plaza Retail REIT is my only real estate trust which has a consecutive dividend increase streak, with 14 straight years under their belt. There are very few Canadian REIT which also sport a dividend increase streak. The increases are small but reliable on PLZ.UN, and the share price has been very conservative / non-volatile, while increasing steadily.

Michael Zakuta, President and CEO said, “The distribution increase represents the fourteenth consecutive annual increase since we began paying distributions in 2003.  We have more than tripled our distribution over the last 14 years, as our initial 8 cents per unit distribution has grown to 27 cents per unit.  The more than tripling of our distribution over the last 14 years is a strong confirmation of our value-add business model and our ability to consistently grow our business and deliver results to our unitholders.  Our business continues to benefit and grow from development and redevelopment activity.  Our goal is always to achieve cash flow per unit and NAV growth and pass that growth onto our unitholders.” (plaza.ca)

Dividend Income increased 0.11%

Considering the Dividend Beginner portfolio contains 260 shares of PLZ.UN, my annual income from PLZ.UN has increased by $2.64, from $ 67.56 to $70.20. My 12-month forward dividend income has increased from $2,334.34 to $2,336.98, an increase of 0.11%. My income from PLZ.UN accounts for 3% of my annual dividend income.

While a $2.64 increase in annual dividend income seems quite low, think about how it would require an investment of $51.76, at a yield of 5.10% (PLZ.UN’s dividend yield) to generate $2.64 in dividend income. That’s the equivalent of getting one to five hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,334.34 $2.64 $2,336.98
Monthly Dividend Income $194.53 $0.22 $194.75
Percentage Increase 0.11%

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.