Chapter 11 - running yields for property vs running yields for equity

Hi there
Just covering off on Chapter 11 at the moment.
It says that one of the reasons why running yields on property are higher than on shares is because:

"on average, dividends will tend to increase more rapidly than rents, as dividends benefit from returns arising from the retention of profits and their re-investment within the company".​

I don't fully understand what the significance of this is. Surely, rent payments can also be used with the same intent (e.g. using them to do renovations or structural upgrades).
Thanks for any clarification!

 

companies retain some portion of their profits and then use it at times when require (at times of adversity or losses).
In this way companies make profit and hence dividends increases.
Does that help?

 

Moreover renovations and structural changes are not often in case of property , that's why they have written "on average dividends will tend to increase......."

 

I suppose that houses can't retain profits by default...

But I would like a more rigorous argument than that

 

Thanks a lot! Much clearer than the book.