So, you’re looking for a raise? Well, you and every other income investor tracking the real estate sector right now. It’s early 2026, and the chatter around US REITs March dividend increases is getting louder than a construction site in downtown Austin.
Honestly, 2025 was a bit of a weird year for REITs. We saw interest rates finally start to cool off—that October pivot to 3.75% was a breath of fresh air—but the market was still obsessing over AI stocks. REITs were basically the wallflowers at the dance. But March is historically the "hike month" where many boards of directors get together and decide exactly how much extra cash to kick back to shareholders.
If you're holding these for the yield, you've probably noticed that the "big five" payers—Prologis, American Tower, and Realty Income—are already setting the pace. S&P Global is projecting a total payout of $61.5 billion across the sector this year. That’s a 4.9% jump in regular dividends.
The March Effect: Who Usually Pulls the Trigger?
March isn't just a random month on the calendar; it’s the end of the first quarter, and for many companies, it’s the time they wrap up their annual reporting and signal their confidence for the rest of the year.
Last year, in March 2025, we saw some massive moves. Chatham Lodging Trust (CLDT) surprised everyone with a 28.6% hike. Then you had CareTrust REIT (CTRE) bumping their payout by 15.5%. Even the shopping center guys at InvenTrust (IVT) threw in a 5% increase.
This year, the vibe is a bit more measured. We're looking at a "bifurcated" market. That’s a fancy way of saying some sectors are absolutely crushing it while others are still trying to find the light switch.
Data Centers and Infrastructure: The New Royalty
If you want to talk about dividend growth, you have to talk about the "specialized" REITs. These are the guys owning the cell towers and the warehouses full of GPUs.
- American Tower (AMT): They’ve been a bit volatile lately, but the prediction for 2026 is a return to mid-single-digit growth. They’re likely to announce something soon that aligns with their $3.4 billion total payout target.
- Digital Realty (DLR): With the AI boom still going strong, their cash flow is basically a firehose. Analysts are eyeing a March increase here as FFO (Funds From Operations) continues to climb.
Retail and Industrial: Still Standing Tall
It’s kinda funny—everyone said the mall was dead five years ago. Tell that to Simon Property Group (SPG). They raised their dividend three times last year.
- Prologis (PLD): This is the king of the warehouse. They’re expected to increase their total dividend outlay by about 10% in 2026. A March announcement is highly probable given their historical patterns.
- Realty Income (O): They call themselves "The Monthly Dividend Company," so they don't wait for March to hike. But they often use the end of Q1 to signal a slightly larger "step-up" than their usual fractional monthly increases.
Why Dividend Growth is Slowing (And Why That’s Okay)
You might see headlines saying dividend growth is "slowing" to 2.8% or 3%. Don't freak out.
Most of that "slowdown" is actually coming from the death of the special dividend. In 2025, special dividends were huge—about $1.72 billion. In 2026, that’s expected to crater to around $500 million.
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Regular dividends—the ones you actually count on for the grocery bill—are still healthy. They’re growing at nearly 5%. That's the real signal. It means the underlying rental income is stable even if the "one-time bonuses" are drying up.
The Office Elephant in the Room
We can't talk about US REITs March dividend increases without mentioning the office sector. It's still tough out there. Occupancy is struggling, and while some NYC office REITs like SL Green are trying to turn a corner, don't expect a dividend hike parade here. Most of these companies are in "capital preservation mode." They’d rather pay down debt than increase the distribution.
How to Spot a Hike Before It Happens
If you’re trying to front-run the news, you’ve got to look at the Payout Ratio.
A REIT that is only paying out 60% of its FFO has plenty of "dry powder" to give you a raise. On the flip side, if the payout ratio is hitting 90% or 100%, they’re basically redlining the engine.
Take Public Storage (PSA). They’ve got a conservative payout ratio under 75% and FFO grew 3% last quarter. They could easily afford a March surprise.
The Interest Rate Tailwind
Remember: REITs borrow a lot of money. When the Fed cuts rates, REITs save on interest. That saved money goes straight to the bottom line, which eventually finds its way into your brokerage account. The market is pricing in more cuts throughout 2026, which makes the March guidance from these companies even more critical.
Actionable Insights for Your Portfolio
Don't just chase the highest yield. That’s a classic rookie move. A 10% yield that doesn't grow is often worse than a 4% yield that grows 10% every year.
- Check the Ex-Date: If you want that March increase, you usually need to own the stock before the end of February or early March. Check the specific "record date" for each REIT.
- Focus on "Self-Funding" REITs: Look for companies like Prologis or Equinix that don't need to issue a ton of new stock to grow. They can fund their own expansions and still hike dividends.
- Watch the 10-Year Treasury: If the 10-year yield drops, REIT prices usually go up. This can "compress" the dividend yield, so it's often better to buy before the hike is officially announced.
- Diversify Sectors: Don't put all your money in retail. Mix in some healthcare (like Welltower) and data centers to protect yourself if consumer spending dips.
Basically, March 2026 is shaping up to be a "show me the money" month. The companies that can grow their dividends in this environment are the ones you want to hold for the next decade.
Next Steps for Investors:
Review your current REIT holdings against their 2025 FFO growth rates. If a company saw FFO growth above 5% but hasn't raised its dividend in the last four quarters, put it on your "March Watchlist" as a prime candidate for an upcoming hike. You can find these figures in the "Financials" section of most brokerage platforms or the company's Investor Relations page.