It was recently reported that Far East Organization, a leading Singapore real estate developer, was planning to raise more than S$500 million via a Real Estate Investment Trust (REIT) by listing some of its hotel and serviced apartment assets next year.

Indeed Singapore’s REIT market has been growing with a number of new listings despite the volatile market as investors are attracted to the prospect of the stable yields that these securities can provide. In this article we’ll examine what REITs are, the type of yields you can get from them and their performance, and what to look out for when investing in them.

What are REITs?

A REIT is a tax-advantaged corporate vehicle that is used to provide a real estate investment structure that can accommodate a wide variety of investors, similar to what mutual funds do with stocks. In this way even a retail investor can get exposure ...