Covered, but leverage is the watch item. The $0.32 quarterly dividend takes 58.2% of Q3 2026 AFFO of $0.55 a share, and the rate was raised twice in 2026 ($0.285 to $0.30 to $0.32). Leverage is the caution: net debt is 6.5× pro forma adjusted EBITDA, inside the 6–7× caution band, while the loan book (about 20% of undepreciated asset value at Q2) is being wound down and replaced with property rents. The 8.7-year weighted average lease term and 99.6% occupancy pass, but the largest-tenant share of rent could not be verified.
Key risk: The dividend is covered on AFFO, but 6.5× leverage plus a shrinking high-yield loan book means AFFO growth must come from new property rents outrunning new shares and higher borrowing costs.
Changes if: Pro forma leverage pushes past 7×, or AFFO per share flattens while the $117.3 million industrial acquisition (announced Oct 9, 2026) is debt-funded.
- ✓AFFO coverage check 58.2% of Q3 AFFO paid out is below the 80% pass line; Q2 was 55% on the new $0.32 rate.
- !Leverage check 6.5× pro forma net debt/adjusted EBITDA sits in the 6–7× caution band (7.7× a year earlier).
- !Lease and concentration check WALE 8.7 years passes (>8), and 56% of annualized base rent is investment-grade; the largest tenant's % of rent could not be verified, so the <10% test is unconfirmed.
- ✓Raise history check Quarterly rate raised $0.285 → $0.30 → $0.32 during 2026, up 12.3% year over year; no cut.
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.