Reits are fast gaining popularity among investors due to its high dividend payout requirement and exposure to different property sectors. If we look at an investor's portfolio, most will hold some portion of Reits in their holdings.

However, as far as receiving dividends are concerned, I believe most investors are only concerned with the amount of DPU they received and all they want is to see this number going up and up each year.

I think as an investor, it helps to understand a little bit of how the Reit structure works and how they can take advantage of the tax structure set by the laws. Having previously worked in a Reit company, I came to understand a little better of how all these things worked. The one thing I want to share today is on the Dividend Distribution Type.

I'm pretty sure that 90% ...