REIT notes from my reading
- Tax exempt if it distributes 90% of income
- Single-tier leverage limit of 45%
- Reit loans are not amortized, tenure is short.
- Yield accretive acquisition is hard to come by.
- Higher yields than privately held property
- Invest REIT during uptrend. This is best captured after a down trend to have stronger probability. Cory : What this mean is growing capital gains and dividend distribution.
- Quality REIT provides inflation escalation, stability and diversification
- Mix of Yield and Growth
- Easy to understand transparent business
- Available for Tax free and SGX trades