There are basically three (3) reasons for those to contemplate in investing in listed REITS stocks which are:

1. Performance

• REITs are total return investments that typically provide high dividends plus the potential for moderate, long-term capital appreciation.

2. Dividends

• The dividend payout from REITS is very high. Dividend growth rates for REIT shares have outpaced inflation over the last decade. Significantly higher than other equities on average, the REIT industry’s dividend yields generally produce a steady stream of income through all market conditions.
• Refer to earlier article comparing Malaysian REITS with other risk free assets yield

3. Diversification Benefits Of REITs

• It has been observed that the correlation of REIT returns to the returns of other stocks and bonds has declined significantly. REITs provide a way to realize the economic benefits of real estate, obtain stable, consistent income and long-term growth while increasing portfolio diversification beyond what other common stocks and fixed income securities can offer by themselves.
• Due to the “negative” correlation of risks with other assets, REITs should form part of the investment portfolio of the investors.

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