Who doesn't love the 'rental $$$' from your REITs?

Most of us will know that the S-REITs (Singapore Real Estate Investment Trust) are trust manged by REIT managers to invest in income generating real estate properties such as shopping malls, offices, hotels, etc. REITs generate their revenue mainly from the rental income of their properties and it is a mandate to distribute at least 90% of their net income to their investors.

As such, who doesn't love the Rental Income from these REITs?

REITs are known for their high distribution yield of 5-8%.

To those who want to learn more about REITs, please download Giraffe Value - The Complete Guide to REITs Singapore Investing (7 Chapters, 15,322 word):

Chapter 1 - REITs Singapore
Chapter 2 - Investors' Expectation & Risks
Chapter 3 - Understanding REITs Structure
Chapter 4 - REITs Growth, Basic, Risks, Tricks
Chapter 5 - REITs Sectors, Retail and Office
Chapter 6 - Industrial REITs, Hospital REITs, Hotel, Cross border and FTSE ST REIT Index
Chapter 7 - REITs Resources & Tools

A special shout-out to Giraffe Value. Thank you for this wonderful REITs book! I enjoyed it and thank you for giving me the permission to share this.

S-REITs: Important Component in my Portfolio

Put it this way, owning S-REITs / REITs in general is akin to becoming a Landlord of multiple properties. Although real estate prices (even REITs' prices) may not appreciate as fast as share prices of companies , it still has a big advantage of providing a regular stream of passive rental income.

If you still do not get the picture, imagine being the owner of several properties and earning a constant stream of rental income every month. S-REITs puts this dream of owning several properties and collecting rental income within your reach (unlike owning several individual properties / apartments in Singapore which is beyond many Singaporeans' reach).

Conclusion - continue to buy REITs on the dip

S-REITs is such an important component in my Portfolio to earn a constant stream of passive income. And I believe it offers the highest passive income among all asset classes. I may be wrong. I will continue to slowly add on more REITs counters or shares each month. Hopefully, one day, I do own enough REITs that generate enough passive income to cover my monthly expenses. I will then become financially free!