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Outstanding Shares of REITs
By REIT-TIREMENT  •  March 29, 2019
If you are a REITs investor, you would notice that almost all REIT outstanding shares increase over time. The commoncontributor to this increase is due to payment of fees in units instead of cash, this is usually in small volume. Share placement by either private placement, preferential offer or rights issue is another major contributor to share increase in which usually involve big volume. There are also other contributors like scrip dividend and convertible shares.

Management fee is paid in units is dilutive, reason being outstanding share increase is permanent while quarter DPU increase is temporary. A simple way to explain the effect is that the REITs need to earn more in next quarter to maintain the same DPU. The situation is worse if the REIT manager receive shares in one hand and sell it at the other hand. Below is list that REIT manager which received fee in units and

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By REIT-TIREMENT
I am Vince and welcome to my blog. I started this blog on 1st January 2019. Since the start of my investment journey, I have been fond of REITs because of its dividends. REITs allowed you to become a property landlord and get rental income without having to fork out large sum of initial capital, look out for tenant as well as manage the properties ...
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