First Trust S&P REIT Index Fund reduces payout to $0.8155 per share as high interest rates squeeze property financing costs.
First Trust S&P REIT Index Fund (FRI) lowered its dividend by 10% in 2025, paying $0.8155 per share across four quarterly distributions. The cut reflects broader pressure on REIT earnings as the 10-year Treasury yield hovers near cycle highs, increasing financing costs for property owners.
FRI tracks the S&P United States REIT Index, passing through rental income from roughly 140 publicly traded landlords. The fund delivered a 15% total return over the past year and 31% over five years, though dividend income has declined from 2024 levels. Its passive structure means distributions mirror underlying REIT payouts, which have faced headwinds from elevated borrowing costs.
Despite the reduction, FRI’s yield remains above the S&P 500, though investors are monitoring whether further cuts may follow if interest rates stay elevated.