REITs, Get Paid Like a Landlord! High-dividend Yields as 7.6%*

A wave of rate hikes across the globe basically announced a "war against inflation". When inflation rises, rents rise, meaning that REITs (Real Estate Investment Trusts) will probably bring in potential gains and dividends and REITs may be one of the choice to fight against inflation.

To put it simply, REITs is a product that securitizes real estate properties, including brick-and-mortars, commercial and residential properties, facilities, etc., allowing investors to invest in real estate with a small amount of money.

Singapore has the largest REIT market in Asia (ex-Japan) and is increasingly becoming a global REIT hub. 42 S-REITs and property trusts with a total market capitalisation of S$98 billion (as of 31 December 2022).*

Below shows the past performance of 43 REITs which is characterized by a higher dividend yield and lower volatility:*

The FTSE ST REIT Index delivered 5-year total returns of 69% (2017-2021) which compared well with other major global REIT indices.

Potential cash flow: As properties can be let out for rent, REITs may bring passive income. The U.S.、Singapore and HongKong laws require trust companies to distribute at least 90 percent of their rental income to shareholders, which may provide potentially greater chances of securing stable returns.

Inflation-fighting property: Rents are the major source of income for REITs. As inflation goes up, rents also have a chance to become higher. REITs may also provide relatively stable dividend.