What are REITs?
Real Estate Investment Trusts (“REITs”) are companies that own or finance income-generating real estate over a span of property sectors. To be qualified as a REIT, companies must meet certain criteria. Most REITs are traded on major stock exchanges and offer various advantages to their investors.
What are the advantages to investors?
REITs are able to deliver compelling total returns based on their high and consistent dividend income, along with their long-term capital appreciation capability. At the same, REITs usually, but not necessarily have comparatively low correlations with other asset classes which make them exceptional diversifiers to reduce overall portfolio risk, volatility and boost returns.
How can REITs generate high and consistent dividends?
Most REITs operate by leasing space and collecting rent on their properties. The income which the company generates will then be paid out to shareholders in the form of dividends. Unlike other companies, REITs are obligated to pay out at least 90% of their taxable revenue to shareholders and that is why REIT investors can expect to receive a consistent stream of dividend payment.
The following REITs will be engaging investors in the upcoming 2021 SGX REITs Week
The 2021 SGX REITs week is an event jointly held by SGX and various REITs, exclusively hosted by Tiger Brokers (Singapore) which aims to engage investors through a series of webinars.
1. Cromwell European REIT (SGX Ticker: CWBU) Webinar - 18 OCT 2021, 7pm
Cromwell European REIT is a real estate investment trust with a commercial portfolio of offices, light industrial and logistics assets across Europe. From the chart above, apart from the COVID-19 pandemic period in March 2020, we can see that the prices of Cromwell European REIT are relatively stable over the past 4 years and its current 12-month yield is at 6.52%.
2. Lendlease Global Commercial REIT (SGX Ticker: JYEU) Webinar – 19 OCT 2021, 6pm
Lendlease Global Commercial REIT is a Singapore real estate investment trust that invests in a diversified portfolio of real estate assets globally. Its portfolio comprises a leasehold interest in 313@Somerset, a prime retail property located in Singapore as well as a freehold interest in Sky Complex which consists of three grade-A office buildings located in Milan. A similar price movement can be seen on Lendlease REIT from the chart above; a decline due to the COVID-19 pandemic. Otherwise, the share price seems to be rather resilient and has shown some recovery to near pre-pandemic levels. Lendlease REIT current 12-month yield is at 5.50%.
For more information such as financial ratios, revenue etc. pertaining to the relevant counters, users can simply get them on their Tiger Trade App.
As with all investments, past performances have no guarantee of future results. Nonetheless, for yield or dividend hunting investors, REITs may be an asset you might want to consider adding to your investment portfolio.
We will be sharing more information on the REITs featured in the SGX REITs Week in our upcoming posts, so stay tuned!
To check out the webinars, you may log in to your Tiger Trade -> Community -> Live.
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