Well covered — logistics rent, still compounding. A 3.39% yield on a $1.07 quarterly dividend, raised in February 2026 from $1.01, is covered by Core FFO: $3.21 of dividends paid in the first nine months of 2026 against $4.73 of Core FFO per share, about a 68% payout. Q3 average occupancy was 95.1% and debt to adjusted EBITDA was 4.5×, so the payout rests on leased warehouses, not leverage.
Key risk: Logistics demand softening — if occupancy slips from the 95.1% Q3 average or rent growth on rollover fades, Core FFO growth, and with it the raise streak, slows first.
Changes if: Core FFO payout pushes well past ~68%, or average occupancy falls materially below 95%. The cushion, not the headline yield, is the tripwire.
- ✓FFO coverage check: Core FFO of $4.73 per share in the first nine months of 2026 covers $3.21 of dividends per share — about 68% paid out, with the rest retained for development.
- ✓Yield check: 3.39% indicated — $1.07/qtr × 4 at the $126.45 close on Oct. 23, 2026. Earned rent income, not a special or return of capital.
- ✓Balance-sheet check: Debt to adjusted EBITDA of 4.5× at Sep. 30, 2026, down from 4.7× at June 30, with $8.84 billion of liquidity; average occupancy 95.1% in Q3.
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.