A Real Estate Investment Trust, or REIT, is an investment trust that owns or operates real estate properties on behalf of its shareholders. In Singapore, REITs typically invest in shopping malls, residential properties, offices, industrial facilities, hospitality and healthcare properties.
REITs are traded on the stock exchange, and an investor that buys a REIT becomes effectively a co-owner of the property. This allows the investor to benefit from the rental income and any earnings from sales of real estate assets, while leaving the day-to-day management to professional property managers.
For those new to REITs, they own many well-known developments across Singapore. For example, Marina Bay Financial District is owned by Suntec REIT while Gleneagles Hospital is owned by Parkway Life REIT. Most shopping malls in Singapore are also owned by REITs including Paragon (SPH REIT), Plaza Singapura (CapitaLand Mall Trust) and the island’s biggest mall - VivoCity (owned by Mapletree Commercial Trust).
read more
