Tuesday, November 17, 2015

REITs yielding 10% but really its not even close...

Dream Office REIT yields 12% right now but digging through the data I realized that in 2014, 70% of distributions were return of capital (ROC). Does this mean that if it was paying a 10% yield in 2014, because 70% of that was return on capital, really it was only yielding 3%?? Does this also mean that I would be holding less REIT units at the end of every distribution since part of that money is really ROC and not actual dividends??



Submitted November 17, 2015 at 03:53PM by Aros23 http://ift.tt/1MAfTmE

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