Skyline Apartment REIT Highlights Total Return

With the recent rocketing in unit price for the Skyline Apartment REIT, the folks at Skyline have taken to highlighting total returns of units, and return on original unit price, as opposed to the distribution on the current unit price.  While the distribution is the same per unit, the percentage distribution is no longer the stellar 9% it used to be.

The Skyline  table below shows distribution rate "on original investment", assuming you got in at $10.00 per unit, at 9.9%.  Skyline kept the distribution rate at 9% when the unit price increased to $11.00 - but now the rate has dropped.  With the latest $13.25 unit value the distribution is 7.47%.  The Aggregate return in the last column is the total return.


With the DRIP option investors can do even better:


Cap rates have been compressing on multi-residential properties - so in the future Skyline may continue to bump up the unit price while the distribution yield stays more modest.