Where do you see this?
Among the listed firms on the Singapore stock exchange, in some shopping malls and office buildings.
What does it mean?
Reits are real estate investment trusts. Their portfolios are made up of several properties.
They own shopping malls, office buildings, industrial buildings, carparks, serviced apartments or hotels.
They collect rent from the tenants of these properties and pay out most of it to shareholders.
When they buy a property, they will look at refurbishing it or changing its tenancy mix to boost yields.
Why is it important?
As Reits are traded like shares, they allow investors to ‘own’ a piece of property without actually buying one.
Unlike buying an actual property, the capital outlay to buy a Reit is much lower and there is greater liquidity.
So you want to use the term? Just say…
‘My hairdresser raised his price recently. He said it was because his landlord, a Reit, raised his rent after they revamped the mall.’
Source : Sunday Times - 14 Dec 2008
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