Distribution yield is a metric used to measure the performance of real estate investment trust units.
It is obtained by dividing a REIT's dividend rate by its price at the point of acquisition. It is also referred to as yield-on-cost (YOC) in certain investment literature.
This entry is part of REITsWeek's glossary of REITs and real estate investment terms.
[…] are two types of yield metrics that you need to be aware of. They are the Property Yield and the Distribution Yield. This entry will discuss Property […]
[…] in the context of REIT investments, Yield could refer to either Property Yield or Distribution Yield. Property Yield is largely a measure of the earning power of a REIT’s portfolio of […]
[…] and the REIT may face the pressure of having to revise rental rates downwards, affecting the distribution yield that you will collect as a shareholder. Watch out for REITs that are doing well only because of a […]