Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
“My first subscriber question after a few years of profitable reading. ECF - Elanor Commercial Property Fund - a smaller REIT paying almost 10% pa. Often incorrectly quoted as paying just 5%. Not exposed to Melbourne and Sydney. Thoughts?” - Craig McGrath.
Hi Craig,
Commercial real estate business ECF is indeed yielding almost 10% unfranked although the stocks only been trading for 12-months – Shaw were involved in the initial listing (although I didn’t participate). Given track record is short, the obvious question is that the sustainability of dividends are yet to be proved. The share price has underperformed the index since March largely I feel due to the paydown of dividends hence investors should be cognisant that capital losses / underperformance might come with the yield.
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