Covered on cash flow, flat since 2021 — office income without growth. A 6.56% yield on a $0.50 quarterly dividend that has not moved since the July 2021 raise. The 131.8% trailing earnings payout looks uncovered, but depreciation distorts REIT earnings — on cash flow the payout runs about 47%, and Q2 2026 FFO guidance was raised on stronger leasing. The yield is real rent income, but with no growth for five years it grades warn, not good.
Key risk: Office demand — if Sun Belt office leasing stalls, FFO coverage tightens and the flat rate comes under pressure.
Changes if: The dividend is cut, or FFO guidance is lowered.
- !Payout-coverage check: 131.8% of trailing earnings but about 47% of cash flow — covered on the cash basis REITs are judged on, flagged on the earnings basis.
- ✓Yield check: 6.56% indicated — $0.50/qtr × 4 at the $30.51 close on Oct. 23, 2026. Earned rent income, not a special or return of capital.
- !Dividend growth check: Flat at $0.50 since the July 2021 raise — no growth to compound.
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.