Bahia Prince
04 Oct 2016
Re: FCRE Dividend Paid at Wrong Rate? Sold these today for a profit of £750 + dividend of £211 last week; £961 return on my £20k investment over 5 weeks, so happy with that. Had intended these to be a long term hold, but took the opportunity to bank the small profit for now. Will buy back in again, perhaps next year when I have another ISA allowance to use, or earlier if the price drops significantly.Thanks again for the prompt support and information from those on this board.
Bahia Prince
30 Sep 2016
Re: FCRE Dividend Paid at Wrong Rate? Thanks for this prompt an clear response azzalyzarc, but BIG OOPS, I clearly have not done my homework properly before buying these a number of weeks ago, and missed that technicality.Not bought in an ISA wrapper as that is full this year, and I am still a higher rate taxpayer.I agree with your analysis on the Regional element, and that is why I bought this alongside FCPT also to provide that alternative balance.I will continue to hold these for now, and re-evaluate later; either sell or transfer to ISA.
Ben Alligin
30 Sep 2016
Re: FCRE Dividend Paid at Wrong Rate? For info, I got today's dividend paid gross through Hargreaves Lansdown. My previous provider, Alliance Trust, paid the dividend net and reclaimed the tax for me. I'm still waiting for the tax refund on the June dividend, as it seems to have got lost when changing ISA providers.
azzalyzarc
30 Sep 2016
Re: FCRE Dividend Paid at Wrong Rate? FCRE is a REIT which means income is paid out as a PID (Property Income Distribution) and 20% tax is automatically deducted. See previous posts below which explain in more detail. Your broker should be able to reclaim the 20% if you are eligible - you may need to register or notify them. I have an ISA with TD Direct and there is no problem reclaiming on this share.I have held for over 8 years - and continue to top up periodically when SP < 90. This is a long term into retirement hold for me, bar any major upsets, for mainly income (reinvested at the moment). I also hold FCPT - that is not a REIT yet so divi paid in full each time. FRCE has a more regionally spread portfolio - which has been a little out of favour in the past, but provides a good long term balance I believe as London cools and the recovery spreads out.
Bahia Prince
30 Sep 2016
FCRE Dividend Paid at Wrong Rate? Just checked my share dealing account (Halifax HSDL) and noticed that the dividend due today has only been paid at the rate of 1.00p per share. I had expected this to be paid at a rate of 1.25p per share?Has anyone else noticed the same, or have your dividends been paid correctly?Thanks
My name is Bond James Bond
14 Sep 2015
Re: Complicated Dividend Its not complicated. If REIT's are held in an ISA then the gross dividend is paid on payment day without holding back any tax, No waiting for tax refund. This is providing your ISA provider has signed the appropriate declaration form for FCRE (and for any other REIT's you may have) and returned the form to the revenue. Mine has. If in doubt check it out. In the unlikely event that your ISA provider has not then it may be worth considering switching your ISA provider to one with a more efficient back office. You should not need to have to chase this as the appropriate paperwork will have been sent to your ISA provider as part of the corporate action during REIT conversion. Regar
Ben Alligin
08 Sep 2015
Complicated Dividend Today's dividend announcement is rather complicated. As I see it, the Property Income Distribution of 0.69p per share will be taxed at source, so only 0.552p will be paid, while the ordinary dividend of 0.56p will be paid in full in my ISA. I'll therefore get 1.112p per share on the 30th Sep and I'll have to wait several weeks to get the remaining 0.138p once my provider reclaims the tax.
Ben Alligin
11 Jul 2015
Re: Dividend benefits REIT status brings... I received 1.0p per share dividend on 30/06/15 in my ISA, as the dividend is paid as a PID (property income distribution) net of 20% tax. I am assuming that my ISA provider will reclaim the 0.25p per share on my behalf from HMRC and pay it out to me soon. As long as that happens, I won't be worse off than before, apart from having to wait a few weeks for the tax refund element of the dividend.
My name is Bond James Bond
02 Mar 2015
Re: Dividend benefits REIT status brings... "I`ve had a REIT holding not on there that yields 7 % , has done so for several years as well as having a history of minor prudent increases"And the REIT is? It may not actually be a REIT for HMRC tax purposes. It could have property loan paper based assets and not bricks and mortar assets (eg SWEF or GCP), it could have a very high gearing (PHP), or yield is not fully covered by the rents by a significant amount (MXF) and the company is reliant of future forecast discounted cashflow valuations. For me these situations could present a higher risk. I may be wrong but without names impossible to say.Regar
Rober01
28 Feb 2015
Re: Dividend benefits REIT status brings... Good piece in Citywire income magazine on property including this one.Well worth a look!!!
trivaskus
27 Feb 2015
Re: Dividend benefits REIT status brings... I also felt the FCPT NAV/SP gap was to wide and bought in to FCRE at a lower price and higher yield.However I retained my FCPT holding which is now up 35% compared with my 23% gain on FCRE so I guess the capital gain potential of FCPT makes up for the lower dividend?
soi
27 Feb 2015
Re: Dividend benefits REIT status brings... Hi BenI`d be inclined to agree with you but that is a woefully inadequate list.I`ve had a REIT holding not on there that yields 7 % , has done so for several years as well as having a history of minor prudent increases.Hardly anyone follows it.I may well buy more.No, it is not as solid as FCRE maybe and the divi is not actually covered but that is improving.I do still hold my half of my original FCRE holding but at a 30 % capital uplift from my cost not sure for how longATBsoi
My name is Bond James Bond
26 Feb 2015
Re: Dividend benefits REIT status brings... The ISA dividends I receive are gross paid as a single payment. No subsequent tax credit. Depends on your ISA provider. If unsure ask them if they have completed the relevant forms enabling gross payments for the REITs you have in the ISA.When I received REIT payments for LMP outside of the ISA tax on the rental element of the dividend was withheld at 20%. Never had tax withheld on any REIT dividends within the ISA. You do have to search hard for REITs as many are under the radar of online stockbroker research areas.I had FCPT paying monthly income. Not a REIT but well pleased with the capital growth in the last 12 months. However recently felt that its premium relative to NAV was too high for comfort.Discovered EPIC. A recently floated REIT who have just reached the stage of paying monthly income and with relatively small premium. Switched out of FCPT into EPIC achieving virtually the same monthly income but at considerably lower capital cost than FCPT and trading at a comparatively small premium. Downside is EPIC are Scottish based in Glasgow but enjoying the income and the reduced capital premium.Also THRL are an interesting REIT although care homes may not be your thing. They lease out the assets to care home tenants on long term leases so don't actually manage the homes. Like ESP they are placing shares over the next few months to raise cash to expand their property portfolio and this may keep the share price in check in the short to medium term but enjoy the yield which is north of 5%. Regar
Krayl
26 Feb 2015
Re: Dividend benefits REIT status brings... Hi James,We have had the discussion before about whether all or part of the 'dividend' gets taxed, without a clear outcome. I currently hold FCRE in an ISA but have not been sure if this is necessary.When we get a payment will it all be classed as 'Interest', which will attract a rebate if held in an ISA - or will there be two separate payments?ThanksKrayl
My name is Bond James Bond
26 Feb 2015
Re: Dividend benefits REIT status brings... For me going forward that is now over £1700 of tax that is not withheld so my ISA is well worth the small fee! 
Come April 6th plan on putting ESP in an ISA hence my interest.Regar
