REIT: Despite falling distribution yields, should you look at Embassy REIT?

The distribution yield is similar to a dividend yield calculation: dividend received/market price of the unit. As in the case of REIT, the distribution happens at least twice a year. Investors can also look at the holding period yield return to determine the investment returns.

Synopsis

REIT is a vehicle through which an individual can engage in income-producing commercial real estate holdings that are also professionally managed. REITs raise funds through IPO by offering their units, with the underlying assets being the real estate portfolio they manage.

Distribution is the primary attraction for investors while investing in real estate investment trusts (REITs). In that respect, it is worth examining if investing in this instrument is lucrative. Embassy Office Parks REIT is the largest listed player with a portfolio of 42.8 million sqft (msf). This REIT is known for its vast portfolio and renowned sponsors, viz. Embassy Group and Blackstone. Though it is the largest REIT, distribution yields

BY

Gaurav Jain & Parimal Ade

Aug 20, 2022, 12:08 PM IST

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