In general, people do not buy US REITs listed in U.S. for dividends.
They buy US REITs for growth. The US REITs on average are US$5b market cap and do no have caps on development/gearing etc. What that means are REITs are allowed to go into greenfield and those will not provide income and explains one of the reasons for lower yields. They retain close to 50% of their income from their FFO. They do not need to do regular fund raising unlike the SREITs. They trade on an average of 3% yield.
SREITs on the other hand are much smaller in size and pay out close to 100% of their distributions, with average yields close to 6% or so. They have development and gearing caps and are deemed to be stable stocks, paying quaterly/half-yearly distributions.
YTD, the US REITs are down 16% vs SREITs who are down close to 8%.
In general, people do not buy US REITs listed in U.S. for dividends.
They buy US REITs for growth. The US REITs on average are US$5b market cap and do no have caps on development/gearing etc. What that means are REITs are allowed to go into greenfield and those will not provide income and explains one of the reasons for lower yields. They retain close to 50% of their income from their FFO. They do not need to do regular fund raising unlike the SREITs. They trade on an average of 3% yield.
SREITs on the other hand are much smaller in size and pay out close to 100% of their distributions, with average yields close to 6% or so. They have development and gearing caps and are deemed to be stable stocks, paying quaterly/half-yearly distributions.
YTD, the US REITs are down 16% vs SREITs who are down close to 8%.