You thought that real estate investment trust (REIT) offers quarterly dividends to investors, you can do no wrong when investing in REITs. Think again. I am not impressed with some REITs.
Back in 2010 and 2013, we were invested in several REITS. The unsatisfactory ones include the following:
|REIT||Price on purchase ($)||Current price ($)||Change (%)|
|Cambridge Ind Trust||0.69||0.56||-18.8%|
Keppel Reit lost 22.6% based on the latest price on the stock exchange. Cambridge Industrial Trust lost 18.8%. I sold Saizen Residential before capital distribution in 2016 and did not have the advantage of this distribution.
Because price per unit had declined the dividend yield shot up. Dividend yield is Dividend divided by Price of unit and therefore when the denominator in the formula decreases, dividend yield rises. One cannot be too happy when dividend yield looks very high. Look at the reason. It could well be that the particular Reit is losing favours with investors and there was a sell-down of the Reit.
|REIT||Dividend Yield (%)|
|Cambridge Ind Trust||7.3|
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