Q: hi, the annual rate of return on the equity price ( not including dividends ) is about 2.15 percent since may 2010. is this what you would expect for this going forward? and do you have the annual rate of return including dividends/fees etc? I can't find that. do you think this is a good time to add shares ( its trading below April 2013 ). im a bit confused as to why it is trading at this level, ie how do metrics compare with April 2013? cheers, chris
5i Research Answer:
Ten year calendar and annualized returns can be found here. Ten year with distributions is 5.3% and we think this is a valid assumption on future returns. REITs have been hurt quite a lot with higher rates, and especially, weakness in the commercial sector. ZRE is fairly flat on a unit value basis as most REITs pay out the majority of their cash, leaving little room for capital reinvestment. But as noted the total return has been north of 5% even so.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.