Probably I am making things too simple here, but the yield of REIT depends primarily on two factors 1) Average Rent per Square foot of the portfolio 2) Cost of Debt.
Embassy scores far ahead than others (e.g. Brookfield) here, still their yield is less. see below:
Is it because 1) Brookfield is more operationally efficient or
2) Brookfield is capitalizing more interest and paying higher distributions
@dd1474 Can you share your views please?
Above is with background that both Embassy and Brookfield
- Have similar leverage (~30%) and
- Are distributing 100% of Net Distributable Cash Flow
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