Well covered — Sun Belt industrial rent, still compounding. A 3.52% yield on a $1.75 quarterly dividend, raised 12.9% in August 2026 from $1.55, is covered by industrial FFO: Q2 FFO of $2.36 against the old $1.55 rate was about a 66% payout, and the new $7.00 annual rate runs about 73% of the $9.52–$9.66 FY2026 FFO guidance midpoint. Sun Belt warehouse rent, not leverage, pays this dividend.
Key risk: Industrial demand — if Sun Belt warehouse leasing softens, FFO growth slows and the raise pace follows.
Changes if: The FFO payout pushes well past ~73% of guidance, or leasing spreads roll over.
- ✓FFO coverage check: Q2 FFO of $2.36 per share covered the $1.55 dividend at about 66%; the new $7.00 rate is about 73% of FY2026 FFO guidance midpoint.
- ✓Yield check: 3.52% indicated — $1.75/qtr × 4 at the $199.02 close on Oct. 23, 2026. Earned rent income, not a special or return of capital.
- ✓Dividend growth check: Raised August 2026 from $1.55 to $1.75, a 12.9% increase. Streak counts conflict across sources, so no count is claimed.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.