A REIT (Real Estate Investment Trust) is a company that owns, and in most cases, operates income-producing real estate such as apartments, shopping centers, offices, hotels and warehouses. Some REITs also engage in financing real estate.
To qualify as a REIT, a company must distribute at least 90 percent of its taxable income to its shareholders annually. A company that qualifies as a REIT is permitted to deduct dividends paid to its shareholders from its corporate taxable income. As a result, most REITs remit at least 100 percent of their taxable income to their shareholders and therefore owe no corporate tax. Taxes are paid by shareholders on the dividends received and any capital gains. Most states honor this federal treatment and also do not require REITs to pay state income tax. Like other businesses, but unlike partnerships, a REIT cannot pass any tax losses through to its investors. For more information, please visit the National Association of Real Estate Investment Trusts’ website.
REITs are total return investments. They typically provide high dividends plus the potential for moderate, long-term capital appreciation. Long-term total returns of REIT stocks are likely to be somewhat less than the returns of higher risk, high-growth stocks and somewhat more than the returns of lower risk bonds.
REITs are required by law to distribute each year to their shareholders at least 90 percent of their taxable income. Thus, REITs tend to be among those companies paying the highest dividends. The dividends come primarily from the relatively stable and predictable stream of contractual rents paid by the tenants who occupy the REIT’s properties. Because rental rates tend to rise during periods of inflation, REIT dividends tend to be protected from the long-term corrosive effect of rising prices.
The low correlation of listed REIT stock returns with the returns of other equities and fixed-income investments varies over time. Thus, including listed REITs in your investment program helps build a more diversified portfolio.
Publicly traded REITs historically offer investors:
• Income & Long-term Growth: REITs provide competitive long-term rates of return that complement the returns from other stocks and from bonds.
• High Dividend Yield: Significantly higher on average than other equities, the industry’s dividend yields historically have produced a steady stream of income through a variety of market conditions.
• Liquidity: Shares of publicly traded REITs are readily converted into cash because they are traded on the major stock exchanges.
• Professional Management: REIT managers are skilled, experienced real estate professionals.
• Oversight: Independent directors of the REIT, independent analysts, independent auditors, and the business and financial media monitor a publicly traded REIT’s financial reporting on a regular basis. This scrutiny provides investors with a measure of protection and more than one barometer of the REIT’s financial condition.
• Disclosure Obligations: REITs whose securities are registered with the SEC are required to make regular SEC disclosures, including quarterly and yearly financial reports.
Chambers Street Properties does not currently offer a dividend reinvestment plan. If you purchased Chambers Street’s common shares through a stockbroker, bank or financial institution you should contact your representative regarding the potential for dividend reinvestment.
DST Systems, Inc. is the transfer agent for Chambers Street’s common shares. DST is available to resolve issues related to dividends as well as facilitate name and address changes if your shares are directly registered with the transfer agent. The toll-free phone number for DST is (855) 450-0288.
Regular mail communication items should be sent to:
Chambers Street Properties
PO Box 219345
Kansas City, MO 64121-9345
Overnight Mail Communication items should be sent to:
Chambers Street Properties
430 W 7th Street, Suite 219345
Kansas City, MO 64105
Chambers Street typically releases financial results within 40 days after the end of the first, second and third quarters. Additionally, the Company releases annual results within 60 days of the end of the fiscal year.
You can view annual reports and SEC filings on this website. If you would like any of the information emailed or mailed to you at no cost, you can submit your request at the Information Request section of this website.
Most of the Company’s reports and financial filings can be retrieved from the Company News, Company Financials or SEC Filings sections of this website. They can also be accessed via the Securities and Exchange Commission (SEC) website at www.sec.gov.
The most recent earnings call webcast and presentation are available on the Corporate Profile page. Quarterly Supplemental Information is also available on this website on the Quarterly Results page.
If you would like any of the information emailed or mailed to you at no cost, you can submit your request at the Information Request section of this website.
The most commonly accepted and reported measure of REIT operating performance. Equal to a REIT’s net income, excluding gains or losses from sales of property, and adding back real estate depreciation. (Source: NAREIT)
Chambers Street calculates Core FFO as FFO exclusive of the net effects of acquisition costs, interest rate swap gains/losses, transition and listing costs, and unrealized gain/loss in investments in unconsolidated entities. Core FFO, is a useful measure to management’s decision-making process.
AFFO refers to a computation made by analysts and investors to measure a real estate company’s cash flow generated by operations. AFFO is usually calculated by subtracting from Funds From Operations (FFO) both (1) normalized recurring expenditures that are capitalized by the REIT and then amortized, but which are necessary to maintain a REIT’s properties and its revenue stream (e.g., new carpeting and drapes in apartment units, leasing expenses and tenant improvement allowances) and (2) “straight-lining” of rents. This calculation also is called Cash Available for Distribution (CAD) or Funds Available for Distribution (FAD). (Source: NAREIT)