This article today is to enable you to build your competency in a niche investing segment called REITs. I have written a few articles in the past diving into REITs as an investment. If you are lost in this article, you might want to check out my REITs Training Center which organize the content in a sequential manner.
When we invest in a portfolio of real estate investment trusts (REIT), we are looking for a total return made up of capital gains and dividends (which is no different from many other investments).
Therefore many investors are attracted to the REITs that pays a more decent dividends.
To pay the dividends, the underlying properties that a REIT own need to earn adequate rental cash flows to cover the amount of dividends required.
This is not always going to be the case and the managers have a few ways to boost the cash …