PROPERTY securities are worth buying for their dividends alone and offer superior yields to government bonds, ING Real Estate said.
Real estate investment trusts are on average being priced at a 17-percent discount to their net asset value, making most of their dividend yields higher than long-term government bonds, Steve Burton, United States-based portfolio manager for ING Clarion Real Estate Securities, said yesterday at a conference in Sydney.
Dividends of real estate investment trusts in the US are yielding 5 percent, compared with 4 percent for 10-year Treasuries, ING Clarion said yesterday in an e-mailed statement.
Trusts in Japan yield 3 percentage points more than 10-year government bonds and Australian trusts yield 3.1 percentage points more than 10-year Commonwealth bonds, ING said, arguing that real estate is still hot.