What dividend yield is targeted or historically delivered by the REIT?

The dividend yield targeted or historically delivered by an industrial land-focused REIT typically falls within a range influenced by the REIT’s portfolio composition, development activity, market exposure, and income generation strategy. Since REITs are legally required to distribute at least 90% of their taxable income to shareholders, dividend yield is a core performance metric. Below is an overview of how dividend yields generally trend for industrial REITs, particularly those with land holdings.

1. Typical Dividend Yield Range

• Publicly traded industrial REITs generally offer a dividend yield of 2.5% to 4.5% annually.
  
• Those with a higher mix of income-producing assets (e.g., stabilized logistics facilities) deliver more consistent and slightly higher yields.
  
• REITs with a greater share of raw land or development-stage properties may offer lower yields (e.g., 1.5% to 2.5%) because income is deferred until buildout or disposition.

2. Yield vs. Total Return

• Dividend yield alone does not reflect the total return, which includes Net Asset Value (NAV) appreciation from land development or asset sale.
  
• Some REITs reinvest capital gains or earnings into development, which lowers current yield but may increase long-term capital appreciation.
  
• Total return-focused REITs may maintain a lower dividend yield to prioritize growth and expansion.

3. Historical Yield Patterns

• During periods of strong leasing and industrial demand (e.g., post-pandemic logistics boom), yields often hold steady or increase as income rises.
  
• REITs more exposed to speculative development or land banking typically see more variable yield patterns, tied to project cycles.
  
• Yields can fluctuate based on interest rates, tenant retention, and payout ratios.

4. Yield Stability Factors

• A REIT’s ability to deliver stable dividends depends on:
  
  • Pre-leased build-to-suit projects
    
  • Rental escalations in long-term leases
    
  • Low leverage and high occupancy
    
  • Minimal income drag from undeveloped land
    
• More mature REITs with a lower land percentage and higher stabilized assets offer greater dividend reliability.

5. Disclosures and Reporting

• Exact dividend yield is disclosed in:
  
  • Quarterly earnings reports
    
  • Investor presentations
    
  • Annual 10-K filings
    
  • Supplemental financial packages
    
• Investors should evaluate dividend payout ratios, FFO (Funds From Operations) coverage, and historical consistency when analyzing a REIT’s dividend sustainability.