3 Things You Need To Know About the REIT Market This Week

Welcome to Sunday! Here are three things about Singapore’s real estate investment trust (REIT) market and investing in general that you might want to look at today and over the rest of the week.

1. Most investors invest in REITs for income because they tend to offer very attractive dividend yields that are easily twice or more of the 2.8% yield that the SPDR STI ETF (SGX: ES3) carries; the SPDR STI ETF is an exchange-traded fund which tracks the fundamentals of Singapore’s market barometer, the Straits Times Index (SGX: ^STI).

But as high as a REIT’s distributions are, it’s not every day that you can find one giving you a 16% annual yield. As rare as they are though, there’re a few simple secrets to getting that elusive high-teen yield and my colleague Chin Hui Leong had shared them when he recently wrote of his experience in achieving a 16% yield by investing in Parkway Life REIT (SGX: C2PU). Find out more about Chin’s thoughts here!

2. The Monetary Authority of Singapore (MAS) has finalized its proposed changes to regulations governing REITs here. Here’s what my colleagues currently have on the important points to note about the changes: See here and here.

3. The new REIT regulations are going to have an impact on the REITs as well as REIT managers listed here in Singapore. One of the most prominent REIT managers here will be  ARA Asset Management Ltd (SGX: D1R). How might the company’s business be affected? I’ve taken a closer look at the whole situation, so you can jump in here for more of my thoughts.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim own ARA Asset Management Ltd.