Accept Realty (NYSE: ADC) is a REIT that owns more than 1,100 commercial properties in 46 states. Most of the tenants are national chains with large format locations, such as grocery stores, home improvement, and general merchandise. This ties Agree’s long-term success to physical retail sales, but many of its tenants have proven resilient to recessions and e-commerce disruptions.
Agree changed from quarterly dividends to monthly dividends in February 2021. Previously, the REIT had steadily increased its quarterly distributions from $ 0.40 per share in 2011 to $ 0.62 in January of this year. The stock now pays $ 0.207 per share each month, producing a return of 3.7%. The adjusted FFO per share was 134% of cash distributed to shareholders in the quarter, so the trust is generating enough profit to support its current payout, even with the economic downturn.
Horizon Technology Finance
Horizon Technology Finance (NASDAQ: HRZN) grants loans to venture capital (VC) start-ups. There aren’t many publicly traded companies with this type of strategy, and most of the competitors are larger with more diversified operations. It’s a pretty risky strategy, but careful underwriting can produce huge results.