When choosing a suitable REIT to invest in, a few important factors need to be taken into account.
The first is that the REIT should embody characteristics that enable it to remain resilient during times of financial stress.
This trait could take the form of a diversified tenant base, such that rental income is spread out over a wider group of tenants, or a strong sponsor that can help to provide financial muscle.
Having a portfolio that includes resilient or growing sub-sectors also helps to buffer the REIT against severe headwinds.
Of course, having a decent dividend yield is yet another key consideration for income-seeking investors.
When scouting for REITs, a good threshold to look at is a yield above 3%, as this allows you to beat the inflation rate.
Here are three REITs with resilient characteristics that are also providing a dividend yield above 3%.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, invests in a portfolio of...