x

Start investing with a
free Kristal.AI account.

icon

Simple. Secure.

*Error message

What are Retail REITs?

Updated on 24 Feb 2020

REITs are one of the most important fixed-income strategies that can help you diversify your portfolio. Read on to know more about this asset class and how it can help your investments.

What are REITs?
What are Retail REITs?
Why should you invest in Retail REITs?
How can you invest in Retail REITs?
Other facts about Retail REITs

What are REITs?

A real estate investment trust (REIT) is an independent trust that manages and owns different types of real estates. Apart from owning real estate properties, they also mortgage them. It can be any type of real estate property, an apartment building, offices, parks, theatres, schools, houses, skyscrapers, hospitals, hotels and any type of government building as well. Any real estate investment trust is different. Some may be involved in varies sub sectors while some may just focus on one real estate industry from healthcare to education. Apart from these, the most famous REITs are commercial, retail, residential and so on. Investing in REITs is a great opportunity for every investor to enter the real estate world without bearing all the risks. They not only diverse a financial portfolio, they provide a steady flow of income from rent and leases from all the real estate properties.

Today, we are going to be talking about a specific sector – the retail industry. Here is everything you need to know about Retail REITs and investing in them.

What are Retail REITs?

Retail REITs are real estate investment trusts that own and manage retail real estate properties. They further rent those properties to tenants and this is how they money. Retail REITs include a plethora of REITs that own and manage –

  • Large regional malls
  • Outlet centres
  • Grocery shopping centres
  • Power centres that are the base for big box retailers
  • Free standing properties

The above mentioned categories are the sub-categories of properties that are managed by Retail REITs. A Retail REIT may track a single category or several of them – it is different for every REIT. For investors that like a steady cash flow, Retail REITs are recommended because every REIT is legally required to distribute 90% of their taxable income to the shareholders as dividends. This goes for all the other REITs as well. This is a very big plus point for any investment and it makes Retail REITs attractive for investors as well.

Why should you invest in Retail REITs?

As an investor, it is your right to know all the advantages of an investment before typing up your money. Here are some reasons in favour of Retail REITs that will convince you and your risk appetite to invest in Retail REITs –
Through Retail REITs, you get to invest in real estate properties, especially retail properties, indirectly. It is the best alternative for buying a retail real estate property yourself. Here, you get to reap the benefits without any hard work.

  • Regular dividends are guaranteed. As discussed before, every REIT has to distribute 90% of their taxable income as dividends.

  • It is a great long-term investment for investors who want to diversify their portfolio, balancing their risk with various small investments instead of risking it all in a single investment.

  • Retail REITs, just like every other REIT, is traded on public exchanges, which makes it convenient to buy and sell them. This also makes them quite transparent, which is a bonus for every investment.

How can you invest in Retail REITs?

There are quite a few ways to invest in Retail REITs. You can explore Retail REITs ETFs and Retail REITs mutual funds that are traded publicly. Another way is to purchase them from a broker directly.

Knowing when and with whom is more important than knowing how to invest in Retail REITs. As you need a lot of knowledge about the industry to make a balanced decision, it is best that you approach a financial expert. At Kristal AI, we have the best team of financial experts who can advise you and make a comprehensive investment plan with minimum risk involved. They also have access to the latest artificial intelligence, which makes their plans research intensive and full proof.

Other facts about Retail REITs

There are more than 35 Retail REITs globally that own and manage retail real estate. However, not every single Retail REITs is untouched by the market. There are many Retail REITs that do not yield any dividends, much less high yields. However, there are some Retail REITs that have been through the test of time but have still paid monthly dividends to their shareholders for some consecutive years. Here are the top 3 Retail REITs in the market that poise profits –

  • Simon Property Group (SPG)
  • Brookfield Property Partners (BPY)
  • Tanger Outlets (SKT)
Disclaimer

The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.

cross
Change your country to India?

You’re now visiting Kristal.AI Worldwide.
To explore diverse offerings in Indian and global products, select India as your country.

ind

India

hkg

Hong Kong

sgp

Singapore

global

Other
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

< Back Proceed as Private Wealth

Wealth Management Solutions