The current average dividend performance FTSE 250 Is 3.37%. In the index, some members have higher performance. Given the divided forecast for the coming years, the investor may try to find good income actions. However, any profitability of a falling price of shares must be treated carefully.

Key points

I came across Working space group (LSE: WKP), FTSE 250. Investment Trust Real Estate (REIT) focuses on commercial real estate for miniature and medium -sized enterprises, mainly in larger London.

Actions have dropped by 40% over the past year with a dividend performance of 7.31%. One of the reasons for the decrease in stock prices results from the decrease in the occupancy. In June, he reports that the occupancy has dropped from 88% to 83% year on year. Many tenants are decreased or uncertain, often driven by hybrid working models.

In addition, because interest rates remained higher than expected, it exerts pressure on real estate valuations. Higher cost of loans makes it hard for potential buyers to support market support, acting to reduce the value of real estate in the work space portfolio.

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The potential of income is still robust

REIT usually pays two dividends a year. Over the past year it was 9.40 pence and 19 pence, a total of 28.4 pens. By using the current 388P share price, we get a 7.31%efficiency.

It should be noted that despite business fights, the dividend cover is 1.2. This means that the current profit per share fully covers dividend payments, with excess, when the number is above one. That’s why I don’t see any immediate pressure it is.

Looking to the future, analysts expect the dividend to augment in total in 2026. 29.15 pence, from 29.60p in 2027. Theoretically, if the price of the shares remains the same, it may translate into a capacity of 7.62%. It would be more than twice as much as the current performance of the index for FTSE 250.

Of course, these expectations are subjective. A lot can change in the upcoming several years, which can either decrease or augment dividend to action.

Carefully sanguine

If the dividend is stable, the main risk in the future is a further decrease in the stock price. This could destroy the income benfits and you could see if commercial real estate would continue in their routine. However, I have a slightly contradictory view that more companies will press back to the office, even smaller companies. If the United Kingdom continues to augment unemployment, those who have a job will be joyful to show their face and prove their value.

As a result, I think that the company could survive the worst storm here. Don’t get me wrong, it is a high risk to be considered. This is not suitable for everyone. But Seriosulia I think about allocating a miniature amount for shares in the benefit of income.