It’s music to a REIT investor’s ears when its distributions are raised.
After all, the primary aim of investing in REITs is to generate a stream of passive income that can help you enjoy a comfortable retirement.
REITs are well-suited for income-focused investors due to their need to pay out at least 90% of their earnings as distributions to enjoy tax exemptions.
There are several ways in which a REIT can grow its distribution per unit (DPU).
One is through the acquisition of properties that help to grow the REIT’s asset base, thus increasing its rental and distributable income.
The other two methods are organic and involve positive rent reversions and asset enhancement initiatives.
Of the above, acquisitions are, by far, the most popular method used by REITs to quickly grow their DPU.
Here are four REITs that recently conducted acquisitions that promise to boost their distributions....