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Pros
Simple to calculate, easy to understand
More complete evaluation of investment's worth
Easy to compare to other companies or benchmarks
Good gauge of long-term performance
Cons
Limited to past performance, no sense of future returns
Sensitive to stock market performance, like nearly any metric
Doesn't reflect size of investment
Total shareholder return (TSR) is a metric that measures the total gain or loss for shareholders who own a company's stock. It's calculated by adding the capital gains from price increases to the dividends paid out. TSR is expressed as an annualized percentage.
How is TSR calculated?
- Opening share price: The initial value of the shares
- Dividends: The amount of dividends paid out to shareholders
- Capital gains: The increase in the value of the shares
- Capital returned: Any amount returned to shareholders
- Capital paid in: Any additional amount paid in by shareholders
- Closing share price: The final value of the shares
I think KIPREIT's market cap has increased considerably to ~702m jumps from the previous ~550m while maintaining a dividend yield of ~7%, average book value per share is at 0.83x
In my opinion, shareholders who do not opt into the DRIP and instead take their dividends in cash will decrease their ownership percentage relative to those who reinvest, leading to dilution. The extent of this dilution will depend on how many shareholders choose to participate in the plan and how many new shares are issued as a result.
