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Landmark Infrastructure: Don't Be Blinded By The Yield

Published Fri, 11 Jan 2019 09:15:52 -0500 on Seeking Alpha

In this article, I will be detailing why I believe shares of Landmark Infrastructure Partners LP (LMRK) are overvalued and why I believe investors should be very cautious with this high yield stock. The main reason why I believe investors should be cautious is because of the dividend coverage.
Dividend Coverage
When looking at the dividend coverage for Landmark Infrastructure Partners, I compared their coverage to potential REIT peers in the net lease category. One of my go-to sources for REIT information is Hoya Capital Real Estate. I went to an article covering net lease REITs to get a list of companies to compare to Landmark Infrastructure Partners. As you can see in the following table, Landmark Infrastructure Partners has the worst dividend coverage of this group of net lease REITs.
CFFO (ttm)
CF for Divs
Divs/CFFO
Landmark Infrastructure Partners
LMRK
$38.05
$45.66
120.00%
Spirit Realty Capital, Inc.
(SRC)
$320.80
$329.00
102.56%
EPR Properties
(EPR)
$477.20
$477.20
100.00%
VEREIT, Inc.
(VER)
$632.00
$607.00
96.04%
W. P. Carey Inc.
(WPC)
$499.90
$438.30
87.68%
Realty Income Corporation
(O)
$924.00
$744.00
80.52%
National Retail Properties, Inc.
(NNN)
$456.90
$330.20
72.27%
STORE Capital Corporation
(STOR)
$363.10
$244.60
67.36%

Table data from Gurufocus
Valuation
I also compared... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
VEREIT 7.61   0.0 -0.22 0.55 7.27
WP CAREY & CO 68.30   25.3 2.70 4.12 5.99
REALTY INCOME 64.77   54.4 1.19 2.65 4.13
NATIONAL RETAIL PROPERTIES 49.95   26.2 1.91 2.00 3.94
EPR PROPERTIES 69.06   20.6 3.36 1.44 2.13

VEREIT - VER
VEREIT - VER  


Older articles featuring Vereit (VER):
5 Dividend Stocks With Yields Up To 7.27% From Real Estate
Do You Feel Lucky? 7 Lucky REITs That Yield 7% Plus
Backing Off Our Buy Rating, W.P. Carey's Dividend Is Covered, But International Exposure Adds Risk
Nicholas Ward's Dividend Growth Portfolio: October Update
Nicholas Ward's Dividend Growth Portfolio: Third Quarter Update
Nicholas Ward's Dividend Growth Portfolio
This 7.9%-Yielding REIT Is Significantly Undervalued
Dividend Income Update April 2018
Our High Yield, Value REIT Portfolio Designed For Outperformance
Why I Just Added This 7.8%-Yielding Commercial Property REIT To My Income Portfolio

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