AREIT announced their results this evening. Of note, distribution per unit dropped from 3.5 cent to 3 cents per quarter.
The number of units have also increased due to the placement, but the contribution have not kicked in yet.
The distribution is rather disappointing, but we hope that with the contribution next quarter they restore some of it.
The amazing thing is the performance fee.
The annualized distribution would be 12.25 cents. Which is a far cry from the 14 cents we are getting now. I believe with the contribution next quarter it will be higher than that.
For now I have update my Dividend Stock Tracker with the new units and DPU. The yield now is a miserly 4.2%. I haven’t see it annualized so low before.
Its even more crazy consider the 2.9% one day climb for a REIT of its size that movement is big. You would have thought that the result is gonna be stellar. Its not.
Such price movement makes me more of an observer than a buyer.
We talk about reward per unit risk. That return is probably not looking good for the risk we put in.