Everything You Need to Know About REITS
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I guess some of your might familiar with REITs already. If you don't or want to learn more, here we go!
I guess some of your might familiar with REITs already. If you don't or want to learn more, here we go!
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;font-weight:bold;">What are REITs</h3>
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;">REITs are listed investment vehicles that contain property assets such as office, shopping malls, industrial buildings, hotels, and cinemas. Like mutual funds, they are investments overseen by professional managers. You can buy or sell A-REITs, which are listed on the ASX, through various brokers and trade them just like stocks.</h3>
Like any investment, A-REITs involve risks. You should seek independent advice from a professional adviser before investing.
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;font-weight:bold;">Types of REITs</h3>
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;">REITs invest in a wide range of real estate property types, including offices, apartment complexes, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure, and hotels. Most REITs specialize in a single property type, but some are diversified.</h3>
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;font-weight:bold;"></h3>
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;font-weight:bold;">How to invest in REITs?</h3>
REITs are designed to be long-term investments. High yields should not be the only criteria when selecting a suitable REIT for your portfolio, so it is essential to read the REIT's prospectus in details to determine whether it is ideal for you.
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Before investing in REITs, investors should consider:
1.Yield: the dividends paid to investors, typically monthly or quarterly, as a percentage of the current stock prices.
2.Industry: How does the industry react to economic changes?
3.Debt-to-Equity Ratio: The ratio is calculated by dividing a company's total liabilities by the amount of equity provided by stockholders. It is a metric used to determine the degree of a company's financial leverage.
4.Price-to-Book-Value Ratio: The P/B ratio compares a company's market capitalization, or market value, to its book value. Specifically, it compares the company's stock price to its book value per share.
Top A-REITs 2021
1.Yield: the dividends paid to investors, typically monthly or quarterly, as a percentage of the current stock prices.
2.Industry: How does the industry react to economic changes?
3.Debt-to-Equity Ratio: The ratio is calculated by dividing a company's total liabilities by the amount of equity provided by stockholders. It is a metric used to determine the degree of a company's financial leverage.
4.Price-to-Book-Value Ratio: The P/B ratio compares a company's market capitalization, or market value, to its book value. Specifically, it compares the company's stock price to its book value per share.
Top A-REITs 2021
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;font-weight:bold;">Pros & Cons of REITs</h3>
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;">The characteristic of real estate investment trusts is that the primary income of the confidence comes from rents, so the payment is relatively stable. As most REITs are traded on the public market, they are simple to buy and sell. Their low correlation with other assets diversifies the overall risks of portfolios while increasing returns.</h3>
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;">However, REITs usually don't provide much capital growth. They must return 90% of their income to investors as part of its structure. As a result, only 10% of taxable income can be reinvested in the REIT to purchase new securities. Besides, REIT dividends are taxed as ordinary incomes, and certain REITs management and transactions cost heavily, leading to high expenses of REITs investments.</h3>
<h3 dir="auto" style="text-align:left;margin-bottom:10px;margin-top:21px;">Disclaimer
Moomoo is an online trading platform offered by Moomoo Inc.. In Australia, financial products and services on moomoo are offered by Futu Securities (Australia) Ltd (ACN 095 920 648) , an Australian Financial Services Licensee (Licence No: 224663) regulated by the Australian Securities and Investments Commission (ASIC).
The content is provided for educational and informational use only. Any information and data used in the content are general in nature, for purpose of illustration only, have been prepared without any consideration of your investment objectives, financial situations or needs, and shall not be used to predict future results or trends. You should consider the appropriateness of the information having regard to your personal circumstances before making any investment decisions. No content herein shall be considered as a recommendation or solicitation for the purchase or sale of securities, futures, or other financial products or services (for whatever reason).
All information and data, if any, are for reference only and past performance should not be viewed as an indicator of future results. It is not a guarantee for future results. Investments in stocks, options, ETFs, and other instruments are subject to risks, the value of investments may fluctuate and as a result, clients may lose the value of their investments. When trading in a margin account, clients may suffer losses greater than their original investments. Please consult your financial adviser as to the suitability of any investments.
Copyright 2022 Moomoo Inc. All rights Reserved.</h3>
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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