Benefits of Investing into REITs. Another REIT choice may be coming

Benefits of Investing into REITs. Another REIT choice may be coming.

What is REIT? It’s Real Estate Investment Trust.

Let’s have Bursa Malaysia telling us a little about what is REIT and why it has now been a popular way for people wanting to invest into properties, usually commercial properties. We cannot buy the whole office tower but we could buy a small tiny little part of that office tower when we buy REITs just like how we buy shares in companies.

According to bursamalaysia.com Before REITs, investors would have to invest into property stocks and/ or physical property to get exposure in the real estate sector.

Investors now have an option to invest in REITs by paying only a fraction of the real estate prices. In other words, REITs provide a way to invest in quality large-scale commercial real estate without having to buy the properties directly. REITs typically offer you a stable income stream and attractive distribution yields. Read here for all the benefits of investing into a REIT.

• Affordability:Investments in REITs cost a fraction of the cost of direct investment in real estate. You can start off with minimal investment outlay.
• Liquidity:REITs are more liquid compared to physical properties. Units of listed REITs are readily converted to cash as they are traded on the stock exchange.
• Stable income stream:REITs tend to pay out steady incomes (similar to dividends), which are derived from existing rents paid by tenants who occupy the REITs’ properties.
• Exposure to large-scale real estate:You can derive the benefits of the real estate on a pro-rated basis through a REIT, a quality investment which is affordable
• Professional management:You benefit from having the REIT and its underlying assets managed by professionals who will add value for a higher yield.

Do read in full anything and everything about REITs here: According to bursamalaysia.com

What are the available REIT choices?

Info source: Securities Commission Malaysia

One more may be coming up yeah

Article in themalaysianreserve.com WCT Holdings Bhd plans to establish and list a real estate investment trust (REIT) on the Main Market of Bursa Malaysia, potentially encompassing an estimated RM2.4 billion worth of assets. 

The key properties anticipated to be part of the REIT include Aeon Mall Bukit Tinggi, Paradigm Mall Johor Bahru (JB), Paradigm Mall Petaling Jaya (PJ) (70% ownership), gate- way@KLIA2 and SkyPark Terminal in Subang (60% ownership). 

For its financial year 2023 (FY23), the retail segment contributed to a 23% year-on-year increase in operating profit, amounting to RM121 million, driven by higher occupancy rates, increased rental income and significant fair value gains on investment properties.  Do read in full as the article has many detailed information too: Article in themalaysianreserve.com

Investing into REITs can be suitable for continuous dividends too

Here are some numbers when it comes to potential dividends when we buy into the respective REITs.

Info Source: https://mreit.fifthperson.com/

I have no special preference on how to decide which to invest into

Maybe choose the one which you are working in the office tower today? You will know if the tower is doing well or not. Maybe choose the one which owns yoru favourite mall you go often? You will know if the mall is doing well or not. Maybe choose the company which you know very well? Usually, if you know them and they are into a REIT, chances are they may know what they are doing? Anyway, I leave it to you yeah. None of these are recommendations. I do not own any REITs currently.

Happy deciding and investing.

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