Regular readers know that I will always take the income distributions from REITs in cash when they offer a Distribution Reinvestment Plan (DRP) as an alternative.
There are two reasons why I do this and they are because:
1. I invest in REITs primarily for income and accepting new units in lieu of cash distributions means having less passive income.
2. There is a possibility that I could get to buy more units of the REITs cheaper later on.
These seem to be reasonable enough.
However, with the DRP offered by AIMS AMP Capital Industrial REIT with regards to 4Q FY2013's distribution, I have decided to accept some DRP units and the balance in cash.
See? Who said that people who invest in REITs are predictable? Could anyone have predicted this decision of mine? OK, why have I decided to do this?
Let us start with what we all know. The REIT went XD ......