Since the dividend yield is inversely proportional to the share price, this change in price has resulted in an increase in the dividend yield. The chart below shows the dividend yield for each fund with values calculated as of beginning of the year and as of last Monday (11.07.2022). The average dividend yield increased from 2.5% to 2.88% by 38 basis points. The chart shows, that yields of 39 out of 40 funds increased and there is nearly a universal change in level.
Dividend yields differ clearly by usage and commercial property yield higher, usually connected to a higher risk. We assign the funds based on the share of commercial properties in the fund portfolio. “Residential”, “Commercial” and “Mixed”. Dividend yields of residential property funds increased on average by 28bps, mixed funds increase by 38bps, commercial funds by 51bps For each usage, the relative increase was in the range of 13-18%.
For many pension funds, investment foundations are the preferred tool for indirect real estate investment. The price of investment foundations is generally less volatile as they are traded at the NAV and thus do not built up agios/disagios. The dividend yield of investment foundations (only dividend paying foundations) offers a rough comparison of the current level of dividend yields. Generally, the funds’ dividend yields are now in line or even higher than dividend yields of investment foundations. It is not possible to make a statement on the quality of the underlying assets and therefore the risk involved, but it offers a rough idea where the current yields stand.
|Average 01.01.2022||Average 11.07.2022||Change in basis points (change in %)||Dividend Yield KGAST Subindices 2021|
|Residential||2.08%||2.36%||28bps (+ 13%)||2.33%|
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