7 Reasons Why You Should Own REITs

The Smart Investor01-02

[ Share Facebook Twitter LinkedIn Email WhatsApp It is no secret that the REIT sector has taken it on the chin last year. The sharp surge in interest rates, along with the presence of ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2400002738?lang=en_US&edition=fundamental","thumbnail":"https://thesmartinvestor.com.sg/wp-content/uploads/2021/10/Parkway-Life-REIT_800x533px-300x200.jpg","is_english":true,"pubTime":"2024-01-02 07:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2400002738","market":"us","top_or_hot":-1,"title":"7 Reasons Why You Should Own REITs","media":"The Smart Investor","content":"<div>\n<p>[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nIt is no secret that the REIT sector has taken it on the chin last year.\nThe sharp surge in interest rates, along with the presence of ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/7-reasons-why-you-should-own-reits/\">Source Link</a>\n\n</div>\n","source":"thesmartinvestor_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>7 Reasons Why You Should Own REITs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n7 Reasons Why You Should Own REITs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-01-02 07:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/7-reasons-why-you-should-own-reits/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nIt is no secret that the REIT sector has taken it on the chin last year.\nThe sharp surge in interest rates, along with the presence of ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/7-reasons-why-you-should-own-reits/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK6520","symbol_name":"工商业服务概念","start_time":0,"source_url":"https://thesmartinvestor.com.sg/7-reasons-why-you-should-own-reits/","article_id":"2400002738","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2021/10/Parkway-Life-REIT_800x533px-300x200.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2400002738","pubTimestamp":1704151800,"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"REITs may be down last year, but here are seven reasons why they are still an attractive income-generating asset class.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK6520":"工商业服务概念","C2PU.SI":"百汇生命产业信托","M44U.SI":"丰树物流信托","BK6108":"医疗保健房地产投资信托","RS1.SI":"中国环境资源","CFA.SI":"NikkoAM-STC Asia REIT","BK6512":"房地产股","BK6082":"工业房地产投资信托","BK6134":"医疗保健房地产信托","CFA":"VictoryShares US 500 Volatility Wtd ETF","BK6133":"工业房地产信托","BK6089":"酒店及度假村房地产投资信托","BK6027":"贸易公司与经销商","HMN.SI":"凯德雅诗阁信托","ME8U.SI":"丰树工业信托","BK6129":"酒店及度假村房地产信托"},"translate_title":"你应该拥有房地产投资信托基金的7个理由","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"C2PU.SI":1,"CFA":1,"CFA.SI":1,"HMN.SI":1,"M44U.SI":1,"ME8U.SI":1,"RS1.SI":0.9},"content_text":"[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nIt is no secret that the REIT sector has taken it on the chin last year.\nThe sharp surge in interest rates, along with the presence of high inflation, act as strong headwinds for the asset class.\nHowever, this phase should be viewed as a temporary event that should eventually pass.\nAlthough sentiment for REITs is weak right now, you should keep these seven reasons in mind as to why they still constitute a great income-generating instrument.\n1. Exposure to different classes of properties\nREITs allow you to gain exposure to many different types of property.\nIf you purchase physical property, you will normally only have access to either commercial properties such as shophouses or residential properties such as HDB flats and condominiums.\nInvesting in REITs opens you up to a wide range of property types such as industrial, healthcare, and hotels.\nFor example, investing in a healthcare REIT such as Parkway Life REIT (SGX: C2PU) allows you to own hospitals and nursing homes.\nAllocating money to an industrial REIT such as Mapletree Industrial Trust (SGX: ME8U) gives you exposure to a range of industrial properties such as data centres and light industrial properties.\nParking some money in CapitaLand Ascott Trust (SGX: HMN) gives you ownership of a range of hotels and service residences across 15 countries.\nThe above are just several examples of how an investor can gain exposure to different property sub-types by owning different REITs.\n2. Regular, predictable distributions\nA REIT can be viewed as an income-generating machine.\nIt is mandated by law to pay out at least 90% of its net profits as distributions, thereby making it a reliable source of distributions.\nThese payments are made either quarterly or half-yearly.\nIncome-seeking investors can rely on REITs to generate a passive source of cash inflows that can either supplement their earned income or act as a substitute for earned income during their retirement years.\n3. Easy to transact\nAnother advantage of REITs is that they are very easy to transact.\nIn essence, REITs are bundles of properties that are wrapped together in a portfolio.\nUnits of the REIT are then issued and traded on a stock exchange, making them easy to buy and sell without much fuss.\nIn contrast, buying a physical property can be a painstaking process where you have to deal with lawyers and property agents.\nThe whole process of purchasing a property is a hassle that may take weeks or months for the required paperwork.\nBuying units of REITs is as simple as clicking a button to purchase on your laptop or mobile phone.\n4. Professionally-managed\nIt can be frustrating and time-consuming to maintain your investment property.\nNot only do you need to ensure that the property is well-kept and in good condition, but you also need to ensure the tenant pays the rental on time and in full.\nREITs have the advantage of being professionally managed as a REIT manager will be appointed to oversee the operations of the REIT.\nA team of staff will ensure that the properties within the REIT are properly maintained and that rental income is collected on time so that distribution can be paid without delay.\n5. Tax exemption\nRemember that rental income from investment properties is taxable in the hands of the recipient.\nThis means that you need to add the rental income to your earned income when filling out your tax form for the Inland Revenue Authority of Singapore.\nIn contrast, REIT distributions are exempted from tax because of the requirement to pay out 90% of their earnings as distributions.\nHence, you can receive a steady, tax-free source of passive income by owning a bunch of REITs.\n6. Affordable lot size\nBuying a property is a major decision as the capital outlay can be substantial.\nWith property prices having risen substantially in the past decade, even a small condominium unit can cost more than a million dollars.\nBuying a REIT, though, requires a much smaller monetary commitment.\nLot sizes on the Singapore Exchange consist of 100 units.\nTherefore, buying one lot of Mapletree Logistics Trust (SGX: M44U) costs just S$163 but gives you exposure to 189 properties in eight countries.\n7. Compounding through dividend reinvestments\nThe last and probably more compelling reason to buy REITs is that you can compound your wealth through the reinvestment of dividends.\nIf you buy a physical property and receive rental income, it is impossible to reinvest this rental income back into the property.\nBut for REITs, you can easily reinvest the distributions you receive by purchasing more units of either the same REIT or other REITs.\nBy doing so, you will slowly compound your wealth and increase your flow of passive income.\nReady to ride the REIT wave in 2024? Discover the secrets to navigating the current market landscape as we delve into the exciting world of Singapore REITs in our upcoming webinar. Registration is free, and we’ll not be holding any insights back. Secure your spot today by clicking here!\nAttention Dividend Investors: Now’s the time to tap into high-yield REITs in Singapore. We’ve just released our latest report, revealing the full details on five Singapore REITs, each boasting distribution yields of 5.5% or higher.  With a focus on stability and performance, these REITs could be the missing piece in your dividend-focused portfolio. Download the FREE report now to unlock these high-yield treasures.\nFollow us on Facebook and Telegram for the latest investing news and analyses!\nDisclosure: Royston Yang owns shares of Mapletree Industrial Trust.\n\n\n\nYahoo\n]","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2400002738"}