Profit From The Big Apple With This Real Estate IPO

As a REIT, Empire State’s new corporate structure will also increase profitability, reduce its cost of capital and drive operational efficiencies. And since REITs are required to pay 90% of their income as distributions to shareholders, it also sets the stage for a solid dividend yield that is projected to be around 2.6% in an income-starved market.

Risks to Consider: The Empire State Building is the crown jewel of the Empire Realty Trust, but that can also be a double-edged sword with a high percentage of revenue concentrated in one building. The observation deck revenue also poses a threat in the event it would be closed due to terroristic threats.

Action to Take –> Manhattan commercial real estate is amongst the most coveted in the world. And with its recent IPO, Empire State Realty is in position to cash in on that strong demand. But not only is that an opportunity to score big capital gains, its 2.6% yield provides a healthy stream of income that is in line with the 10-year Treasury. That’s a powerful source of growth and income for investors looking for exposure to the most exclusive real estate market in the world.

This article was originally written by Michael Vodicka and posted on StreetAuthority.