(CT) - Capital Trust, Inc - The Board of Directors increased the company’s quarterly dividend twice over the past five months

Capital Trust, Inc. (CT), a Zacks #1 Rank stock, topped the Street’s earnings estimate in eight out of the past nine quarters, most recently by 11.7%. Consensus estimates for 2006 and 2007 have been trending higher. The Board of Directors raised the company’s quarterly dividend twice over the past five months. The company has a price-to-book ratio of 1.9, compared to 4.8 for the market. Full Analysis Capital Trust, Inc. is a finance and investment management company focused on the commercial real estate industry. The company originates, underwrites, structures, closes and manages real estate-related high-yield debt and other investments. CT is organized as a real estate investment trust (REIT). CT exceeded analysts’ earnings expectations in eight out of the past nine quarters by an average margin of 9.9%. On Oct 30, the company surprised to the upside by 11.7% when it reported third-quarter earnings per share of 86 cents. The Street was calling for 77 cents per share. Compared to profits of 64 cents per share in the prior-year period, earnings soared 34.4%. CEO John Klopp stated, “New originations topped $550 million, an all-time record, with 50% representing first mortgage and construction loans. Most important, our pipeline of investment opportunities has never been stronger and we are excited about our new initiative in Brazil.” Analysts’ optimism about the company’s future earnings potential continues to grow. Consensus estimates for this quarter and next are up 2.6% and 6.4%, respectively, over the past 60 days. Profit forecasts for the full years of 2006 and 2007 have risen 5.8% and 5.5%, respectively, over the same period of time. Earnings per share are forecasted to grow 10% over the next 3-5 years. Investors seeking additional income in the form of a dividend have been extremely satisfied with their investment in CT. The Board of Directors increased the company’s quarterly dividend twice over the past five months. On Jun 14, the Board declared a quarterly dividend of 70 cents per share, which represented a 16.7% increase when compared to its previous quarterly dividend. On Sep 15, the 70-cent dividend was upped 7.1% to 75 cents per share. CT has a current dividend yield of 6.9% and a five-year average dividend yield of 5.0%. CT is currently trading at a valuation of 13.4x trailing 12-month earnings and at 13.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.2x trailing 12-month earnings and at 16.2x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.9, compared to 4.8 for the market. Its return on equity of 14% is in line with the industry average. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home