Introducing the Armada US Listed Durable REIT Dividend Index
A REIT INDEX THAT SEEKS GROWTH & INCOME VIA LISTED REITS WITH SUSTAINABLE, GROWING DIVIDENDS.
We believe in real estate's durability as an asset class. Certain fundamental and quantitative factors allow us to define durability in a systematic and process-driven way when it comes to listed REITs.
“Durable investments are those that can withstand the storms and continue to grow over time." -Benjamin Graham
We’ve been researching and innovating around the idea of “durable” real estate for some time. We found that some types of real estate are mission-critical for society over the long term, and others are more prone to cyclicality. For example, it is intuitive that apartment houses and grocery stores have more inherent durability than resorts or movie theaters. We doubt that passive, market capitalization-weighted approaches accurately reflect this dynamic.
As quantitative, systematic investors, we develop strategies that provide specific exposures to underlying fundamentals that aim to transcend narratives. That made us wonder if these critical asset types exhibited any fundamental advantage. Our research showed that durable real estate demonstrated consistent dividend growth.
We developed a quantitative screen optimized for REITs with strong financial stability and consistent dividend growth. We are proud to announce the launch of our newest index with MarketVectors: The Armada US Listed Durable REIT Dividend Index.
The index has:
40 Holdings diversified across REIT sub-sectors
3.36% Trailing 12-Month Dividend Yield
+10% 5-Year Dividend Growth
Index performance is not illustrative of fund performance. One cannot invest directly in an index.
Identifiers
Our approach uses a scoring methodology to quantify financial stability, dividend payout ratios, and historic dividend growth. Companies with lower debt burdens, low payout ratios, and a history of returning shareholder capital lead to a subset of listed REITs with a high likelihood of continued dividend growth. The methodology then ranks listed REITs and uses a modified, float-adjusted market capitalization-weighted approach with concentration limits.
>> Find out more about the Armada US Listed Durable REIT Dividend Index
The Armada Approach
Armada is an asset management and research firm focused exclusively on listed real estate and REITs. Our strategies employ a systematic approach that offers investors targeted exposure to real estate. We apply this approach across exchange-listed products, separately managed accounts, and index creation.
We believe that REIT investors can improve their portfolios with thoughtful, deeply researched exposure to the factors that truly drive real estate performance. If you’d like to schedule a time to hear about our approach, products, and development pipeline, follow the link below.
>> Schedule a meeting with Hunter Hopcroft, Director of Portfolio Solutions