A reader asked what's my view on vesting in a REIT for a start (of the investing journey)? This was posted on the article where I revealed that CapitaLand Mall Trust (CMT) was my first stock back when I began my investing journey.
I can't say "yes" or "no" to the question, but I can try to discuss some points about REIT.
REITS must distribute 90% of their distributable income
This is mandated by MAS. Distributable income is not the same as net profit. Distributable income is more like cash earnings (so a valuation loss will not affect it's distributable income of a REIT).
Most REITs distribute dividends quarterly, this somewhat gives investors a steady stream of dividends.
Somewhat is key, because REITs are not fixed deposits/bonds. Dividends are not guaranteed.
You could lose your capital invested
As REITs are not fixed deposits, your capital is not protected. Instead, the ......