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,...