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.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.

3 thoughts on “Distribution Yield”
  1. […] 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 […]

  2. […] 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 […]

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