REITs stands for Real Estate Investment Trusts.
Investors invest in REITs directly or indirectly through mutual funds. REITs are very popular amongst investors looking to kick start their “dividend investing journey” due to the high levels of distributable income.
Read also: Working Adults: Guide to REITs Investing in Singapore
Simply put, a REIT is a trust that invests in commercial properties (hotels, offices, retail spaces etc), which are then rented to tenants. Rental collected will then become cash flow to the REIT. A sizeable amount of that cash flow will then be distributed to the REIT’s unitholders.
In an ideal scenario, investors should wish for:
the REIT you have invested in grows steadily...