Assessing the sustainability of Presidio Property Trust Inc's dividend in light of its recent announcement
Presidio Property Trust Inc (SQFT, Financial) recently announced a dividend of $0.02 per share, payable on 2023-10-11, with the ex-dividend date set for 2023-10-05. This announcement has prompted investors to focus on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Presidio Property Trust Inc's dividend performance and assess its sustainability.
Understanding Presidio Property Trust Inc
Presidio Property Trust Inc operates as a self-administered real estate investment trust. It boasts a diverse portfolio of office, retail, industrial, self-storage, and residential properties. The company's primary objective is to maximize long-term stockholder value through the acquisition, management, leasing, and selective redevelopment of high-quality office and industrial properties.
Presidio Property Trust Inc's Dividend History
Presidio Property Trust Inc (SQFT, Financial) has maintained a consistent dividend payment record since 2020, with dividends currently distributed on a quarterly basis. The chart below illustrates the annual Dividends Per Share for tracking historical trends.
Presidio Property Trust Inc's Dividend Yield and Growth
As of today, Presidio Property Trust Inc currently boasts a 12-month trailing dividend yield of 11.21% and a 12-month forward dividend yield of 11.97%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Presidio Property Trust Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Presidio Property Trust Inc stock as of today is approximately 11.21%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of a dividend is often evaluated through the company's payout ratio. The dividend payout ratio offers insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Presidio Property Trust Inc's dividend payout ratio is 0.00.
Presidio Property Trust Inc's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Presidio Property Trust Inc's profitability 4 out of 10 as of 2023-06-30, suggesting that the dividend may not be sustainable. The company has reported net profit in 1 year out of the past 10 years.
Presidio Property Trust Inc's Growth Metrics and Future Outlook
For dividends to be sustainable, a company must demonstrate robust growth metrics. Presidio Property Trust Inc's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable.
Revenue is a critical factor for any company, and Presidio Property Trust Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. However, Presidio Property Trust Inc's revenue has increased by approximately -22.40% per year on average, a rate that underperforms approximately 94.15% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. However, during the past three years, Presidio Property Trust Inc's earnings increased by approximately -101.20% per year on average, a rate that underperforms approximately 99.59% of global competitors.
Conclusion
In conclusion, while Presidio Property Trust Inc's consistent dividend payments and high yield are attractive, the company's poor profitability and growth metrics raise concerns about the sustainability of its dividends. Investors must weigh these factors carefully before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
