For reits, there are five sub-sectors: Office, Retail, Industrial, Hospitality and Healthcare.
This selection bias stems from our thinking that the return we get is purely from dividends, which isnt true!(Note that there are also some reits that raise finance through equity via rights issue like.Driven by our passion for travel, the Agoda team works hard to bring you the cheapest prices on hotels, resorts, unique homes, vacation rentals, and more.So rather than looking at dividend alone, we should instead be looking at the total return that we can generate from the reit.Apart from dividends, we would expect to make capital gains as well.Gearing ratio represents a reits amount of debt over its total assets.As investors, we tend to have selection bias in focusing on reits that have higher dividend yields and avoid those that have lower yields.This is in stark contrast channel 5 kroger sweepstakes to the shareholders of Keppel DC reit, which made.6 percent in 2016.Thus, investments in reits will expose investors to interest rate risk.Each sub-sector has a different outlook considering the economics factors affecting them.
Investors are exposed to higher interest rate risk when reits are over-leveraged (high gearing level).Now compare that with Keppel DC reits performance over the past year of 18 percent gain.There are still outstanding reits within each sub-sector.To determine the relative amount of debt a reit has, we use gearing ratio as a gauge.This means that investing in reits are like investing in real estate, albeit without property cooling measures like absd.Reits stand for Real Estate Investment Trust.From adventure travel and backpacking to honeymoons and family vacations, we've got you covered.In 2016, Sabana reit share price fell chase ultimate rewards mall merchant list by 25 percent (even if we exclude the significant drop in Jan 2017 from the rights issue announcement!).As the ratio increases, it signifies the more debt the reit has over each unit of asset.
Although reits such as CapitaMall Trust remains an outstanding reit in the retail sub-sector, why not place our capital in Keppel DC reit instead where there is clearer and more visible growth?