Would like to know more about REITs, particularly about returns and dividends?

Similar to Stocks, REITS are basically stocks that invest in real estate for the purpose of generating income from the rental of the properties that are then distributed back to REITs shareholders.

Possible reasons why REITs are formed as it allows assets owner to liquidate their assets via the stock market through IPO instead of selling the property. And these assets owner makes money not only from the sales of the property but also make recurring income from property management and management fees.

link: https://www.cmt.com.sg/trust-structure.html

To invest in these REITs, the main thing I would look at is the stability of the returns that I will get as dividends from investing in these REITs. Since I am into dividend income, evaluating how the dividends are stable or increasing over time is important.

And the following main factors affect the dividends I will be getting in the long term

• Dividend Payout

• Gearing

• Property Sector

• Weighted Average Lease Expiry

• Country Risk

Dividend payout is distributed back to your bank account and the dates will be announced by the company.

Link: https://cmt.listedcompany.com/distribution_hist...
Price of the REIT fluctuates up and down similar to stocks. The reasons can be a lot as the price is set by the market. In the long run, it will eventually be set by the fundamentals of the company performance.

Let me know what other questions you have. You can also search on Seedly blog for more information about REITs.

REITs are Real Estate Investment Trust. They are handled by a Real Estate Management Company to do leasing and rental of properties from different sectors from residential, commercial, industrial, hotels and even data centres and workers/student hostel.

The common returns you should be expecting is about 5% to 8% dividends, while there is much less capital growth as they give out their earnings. They may do Rights to raise funds to acquire assets, and hence you may need ready cash to buy into them when they do have it.

For the rise and fall of the REITs prices, from current market sentiments, they are acting like Stocks. They are based on the yield that they can give currently. The higher the yield, the higher the price they go. Of course, not forgetting the Free Cashflow (which needs to be positive) to sustain the dividend payouts.

Dividends are crediting back to the bank account as cash, that people buy and sell the REITs. You will need to take note of the dividend payout dates yourself.