How to invest in REITs?

This is a reply to a reader's comment on REITs and how I process them in my mind. 

If you are interested, see reader's comment: HERE. 

My reply: 

What we look out for will depend on our motivation. 

As an investor for income, I am more interested in whether my investments are able to pay me a meaningful and sustainable dividend.

This is especially important for a retiree like me with no earned income.

When it comes to REITs, I pay attention to whether money is being put in my pocket.

I would ask if what the management is doing would be beneficial or detrimental over time?

If beneficial, we want to make sure the benefits are bona fide for the longer term.

We want to make sure that the benefits are not illusionary or temporary.

Of course, there are other things to consider because we don't want to put money in an Eagle Hospitality Trust, for example.


It is hard to put everything down on paper because it could also just be personal experience at times. 

I could get bad vibes and just decide to stay away for peace of mind, for example.

So, for a start, understand what you want and you will know what to look out for.  

"I can never make it easy by saying ‘Here are three things’. You have to derive it yourself to ingrain it in your head for the rest of your life." 

- Charlie Munger 

Having said this, there was something I gave out during my talks (i.e. Evening with AK and friends) in the past and it might or might not be useful to you:

I also pulled some older blogs which I think might make for interesting reading: 

1. Ascendas Hospitality Trust: A nibble. 

2. Eagle Hospitality Trust: My philosophy. 

3. Saizen REIT is undervalued. 

4. Croesus Retail Trust and current thoughts. 

5. Sabana REIT and current thoughts. 

6. REITs and rights issue.

After more than 12 years of blogging, you could probably find more related posts in ASSI if you do a search.

You could also go to the web version of my blog and read the blogs linked in the right sidebar.

Unfortunately, the mobile version of my blog does not display the sidebars (and many other things.)

Gambatte! 

Recently published: 

Why AK invests in REITs?