REITS INVESTING ·
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Reit distributions to fund your retirement may be less than what you anticipate

Singapore

SINGAPORE-LISTED real estate investment trusts (S-Reits) have been a favourite asset class for investors in search of income.

But those hoping to retire with a portfolio of Reits should be mindful of future demands for cash infusions.

S-Reits and property trusts have an average 12-month dividend yield of 6.4 per cent, according to data by Bloomberg and the Singapore Exchange (SGX) as at Jan 31. This dwarfs the average 3 per cent yield from the benchmark Straits Times Index (STI) over the same period.

But some S-Reits have also been active in raising money from investors via rights issues and preferential offerings - which is not factored into dividend yield calculations.

Taken to the extreme,...

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