Select Income REIT (SIR)
Dividend Yield: 7.8%
Last up is Select Income REIT (NASDAQ:SIR), a hybrid of sorts that owns industrial properties and office properties, both of which are typically leased to single tenants such as FedEx Corporation (NYSE:FDX) and ServiceNow Inc (NYSE:NOW).
All told, the company’s 121 properties across 35 states represent approximately 44.8 million rentable square feet – with 40% of that space located in Hawaii. In fact, Select Income REIT is Hawaii’s largest industrial landowner.
While it’s a relatively boring industry, the growth has been explosive, with revenues blasting off from $188 million in 2013 to $462 million last year. Management has raised the dividend by a little more than 20 percent over the past five years, but also maintained a comfortable FFO payout ratio in the 70% range.
Moreover, SIR has also quieted a longtime concern – issuing a boatload of stock for years – by keeping its shares count level since late 2015.
Select Income (SIR) Has Worked Out All the Kinks