How do UK REITs compare to US REITs for dividends?

I watched a video of Paul Briscoe earlier today and didn’t know there are UK REITs too. Do they pay monthly dividends too? And how high are the dividends compared to Realty or Main Street?

Uk reits mostly pay quarterly but their dividend usually isn’t that high compared to US reits

1 Like

BBOX and BLAND are your friends

1 Like

I have IUKP.
https://www.ishares.com/uk/individual/en/products/251802/

A little risky, but less than owning each company etc.

edit:
These are what I currently have:
IUKP for UK.
IPRP for Europe.
IWDP for US and other markets.

  • no stamp duty to pay as it’s ETFs.
1 Like

So it is probably better to keep focussing on the US REITs. Not all my REITs are fractional though, so can’t add them to my newly created pie.

the benefit UK REITs have to UK investors that US REITs don’t have is the protection from additional taxation ideal for an ISA. there is no 15% withholding tax applied to dividends and there is no corporation tax applied before dividends are paid. You also don’t need to worry about negative FX influence reducing your dividends.

UK REITs come into their own in the ISA account as the full payments are protected from tax charges so as the investor you see more of the company returns paid out to you.

a UK REIT is the most tax efficient way to invest in an ISA.

4 Likes

So for Dutch investors it doesn’t have an advantage.

It gets you into another market segment, that’s about it I think otherwise.

you won’t face withholding tax since that’s not a thing in the UK. but you would still have to pay your dividend/income tax as appropriate. so if your tax brackets are less than 15% there is that little bonus. but typically the UK market isn’t as lucrative as the US. for those who live in countries where the full 30% withholding applies, then UK REITs can make more sense than US.

If you buy a share cheap enough, then the yield-to-cost can be good enough to beat out more lucrative companies in theory.

Ive been thinking about which REITs to use. So far got some with IUKP and IPRP. Thinking of IUSP IASP too.

IUKP seems to have poor performance compared to the others. Also IASP and IWDP have higher costs

Probably will spread over most of the above (thoughts?)

Bob

I’ve got for Realty Income, Prologis and Digital Realty as my REITs.

No UKs although I did sort of like the look of SEGRO.

This guy does great breakdowns of the markets:
His most recent one covers REITS.

Worth a watch, also note that after crashes the REIT sector as he mentions does quite well.
Likewise, the REIT sector has really taken a beating recently with the current economic mess.

2 Likes

Very interesting video :smiley:.

Does any of you know of any Infrastructure (eg. Highways, Telecomms, etc) REITs with fair dividends? (Lets say over 3%)

Edit: The website the video mentions, reit.com, includes the following 6:
https://www.reit.com/what-reit/reit-sectors/infrastructure-reits

Anything in Europe maybe? Or any extra?

EPRA seems to have quite a low charge and cover global reit. What you lot think about that one ?

Thanks for this thoughtful idea. I agree this is probably less risky than BLND for example since the risk is spread through various companies and a decent Divident as well with this ETF. I did buy BLND a month ago and made a modest profit but with the popularity of working from home it could be these companies will struggle and picking the “one” that will survive and thrive is a beyond me:-) So I like this option maybe a DRIP would work well here over the next few years as things settle. Anyhow…thanks

1 Like