REITs 101: Why invest in REITs?
Hey, mooers! At the end of this post, there is a chance for you to win points!
Welcome back to REITs 101, which will level up your REITs investment knowledge with our full educational REIT Investment.
Question review
A REIT must pay at least __ of taxable income
Answer: 90%
A REIT must pay at least __ of taxable income
Answer: 90%
Good job! Most of you got the right answer. Congratulations to those mooers who got it right and won 50 points. Don't worry if you get it wrong, let's try again!
Before introducing why invest in REITs, we should know what a REIT is. You can find out the explanation of REITs in our previous post >> What is a REIT
Competitve long-term performance
S-REITs are a type of investment that is a combination between bonds and listed equities. They can provide competitive total returns by providing both long-term capital appreciation and a regular income stream.
S-REITs are a type of investment that is a combination between bonds and listed equities. They can provide competitive total returns by providing both long-term capital appreciation and a regular income stream.
Lower Barriers to Entry
Investing in S-REITs is often less expensive than investing in tangible real estate.
Investing in S-REITs is often less expensive than investing in tangible real estate.
Portfolio Diversification
Due to their low correlation with other assets, REITs can offer portfolio diversification.
Due to their low correlation with other assets, REITs can offer portfolio diversification.
Stable Dividend Yields
S-REITs are a popular investment option among institutions and individuals that seek a extra income stream to pay their living expenditures because of the consistent dividend income they typically provide.
S-REITs are a popular investment option among institutions and individuals that seek a extra income stream to pay their living expenditures because of the consistent dividend income they typically provide.
Liquidity
On the Singapore stock exchange, shares of publicly listed S-REITs are easily traded.
On the Singapore stock exchange, shares of publicly listed S-REITs are easily traded.
Transparency
S-REITs must follow strict corporate governance guidelines and must publicly disclose material information on SGXNET. Several independent analysts monitor their performance and their annual accounts are audited by external auditors.
S-REITs must follow strict corporate governance guidelines and must publicly disclose material information on SGXNET. Several independent analysts monitor their performance and their annual accounts are audited by external auditors.
Tax Transparency
S-REITs that distribute at least 90% of their taxable specified income in the same year in which it is derived qualify for tax transparency treatment in Singapore, which means that specified income distributed to unitholders is not subject to corporate tax at the S-REIT level and is only taxed (where applicable) at the unitholder level.
S-REITs that distribute at least 90% of their taxable specified income in the same year in which it is derived qualify for tax transparency treatment in Singapore, which means that specified income distributed to unitholders is not subject to corporate tax at the S-REIT level and is only taxed (where applicable) at the unitholder level.
Quick Test
After the above introduction, you should have some basic understanding of REITs. Let's have a quick test. Mooers who get it right will get 50 points.
Hint: You can find the answer in this post!
After the above introduction, you should have some basic understanding of REITs. Let's have a quick test. Mooers who get it right will get 50 points.
Hint: You can find the answer in this post!
The answer and winners will be revealed in the next post. Winners will get 50 points, with which you can exchange gifts at Reward Club.
Thank you for reading and particiapting.
Disclaimer
Moomoo is a trading platform offered by Moomoo Inc. In Singapore, capital markets products and services on moomoo are offered by Futu Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS).
Moomoo is a trading platform offered by Moomoo Inc. In Singapore, capital markets products and services on moomoo are offered by Futu Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS).
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