Apparently the announcement that one third of the dividend has been supported by capital gains was not the best of news. The concern must be that this third can't be sustained as real estate prices are generally falling. On the other hand US REITs seemed to have bottomed and many REITs now have quite positive chart patterns. Two that come to mind are WRE and O.
Your point is well-made in that U.S. REIT'S, particularly health-care, made a nice recovery in Late July-early August. Historically, I don't recall what percentage of the dividend has been comprised of capital gains. Do you have any insight here? Also, I don't think our $1.70 per share year end distribtuion of 2007 will ever be approached in 2008.
Well, I think you are right, it isn't good news. But as you say, REITS seemd to have bottomed and I don't see too many of them cutting distributions so that should pass through the fund to us. Tough these times are.
As for me...if the cash flow can support the dividend and the company can give me a TAX FREE gift...I look at that as a positive... CASH FLOW IS KING ..... TAX FREE MONEY IS A MANA FROM HEAVEN...take the money and run...