AFIN - American Finance Trust's Stable And Covered 9% Dividend Yield Trounces Realty Income
- Most net lease REITs have experienced massive stock price gains over the last several quarters, returning to pre-covid highs. AFIN remains an exception.
- AFIN's portfolio has performed well, returning to 100% collection rental rate collections and higher occupancy levels compared to March 2020 numbers.
- Recent acquisitions have been at cap rates of over 8%, while dispositions have been in the mid-5% range. Despite this great spread, AFIN maintains over 60% tenants investment grade.
- The valuation discount is evident in their very low earnings multiple and net asset value. The dividend yields over 9%, more than double most retail net lease peers.
- External management and high leverage ratios will warrant a discount to many net lease REITs, but the current one is way too large to justify.
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American Finance Trust's Stable And Covered 9% Dividend Yield Trounces Realty Income