- Despite strong portfolio growth, revenue growth, and AFFO per share growth, SRC continues to be shunned by the market.
- Though SRC has a punishingly high cost of equity, its BBB credit rating affords the REIT a fairly low cost of debt.
- Management has made do with their less-than-optimal cost of capital, acquiring solid properties at an attractive spread above SRC's cost of capital.
- The 2% dividend hike in Q3 2021 should be the first of many more to come in future years.
- If the market comes to recognize the quality of the new and improved SRC, then shareholder returns should be fantastic from the current price.
For further details see:
Spirit Realty Capital: Dirt Cheap And Higher Quality Than The Market Thinks