Reits are good vehicles for retirement income

THERE are inherent risks to Reits investments but the one highlighted by the article "Reits distributions to fund your retirement may be less than what you anticipate" (The Business Times, Mar 16), whereby S-Reits raise more money through cash infusions for yield-accreting acquisitions than what they pay out in distributions, is a little alarmist.

The S-Reits investment managerial doctrine is for raising funds from stakeholders for the buying of positively accretive properties by issuing new rights issues.

There is indeed outlay of more money for increased shareholding in the company and savvy investors must always have the ready means for this well-established Reits stratagem, but these are always offered at a discount to market and very often can be sold at a profit when the new shares are listed. Nett-nett, shareholders benefit from these company expansion exercises.