Understanding Real Estate Investment Trusts (REITs)
3.9 (149 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
4,467 students enrolled

Understanding Real Estate Investment Trusts (REITs)

Fundamentals of REIT investing
3.9 (149 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
4,467 students enrolled
Last updated 9/2017
English
English [Auto-generated]
Price: Free
This course includes
  • 32 mins on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What you'll learn
  • start investing in REITs
Requirements
  • Basic understanding of investing
Description

Investment choices cover a wide range of asset classes: Bonds, Equities, Unit Trusts, Exchange Traded Funds (ETF), Real Estate Investment Trusts (REITs), Options and many others.

This module introduces investors to the fundamentals of REIT investing.

REITs generally have moderate to high risk and potential returns.

For the purposes of this module, it is also assumed that participants have a basic understanding of investments in general before investing in REITs. We strongly recommend that participants in this module go through our foundation module on investing or a similar foundation modules.

As with any other investment product, investors should also take time to understand the product and consider whether it is suitable for them based on their risk profile, time horizon and investment objectives. 

Who this course is for:
  • Those interested in investing
Course content
Expand all 11 lectures 32:23
+ Introduction
1 lecture 01:12

Real Estate Investment Trusts (REITs) are instruments that offer investors the opportunity to invest in a professionally managed portfolio of real estate, through the purchase of a publicly-traded investment product. Individuals invest by purchasing units of the REIT.

The investment objective of REITs is to provide unit holders with distribution income, usually from rental income, and capital gains from the appreciation of the REIT price and/ or the profitable sale of real estate assets. Distribution income is similar in some ways to the dividend income you may get from shares.

Introduction
01:12
+ Understanding REITs
6 lectures 17:30

REITs are collective investment schemes that invest in a portfolio of income generating real estate assets such as shopping malls, warehouses, offices, hotels or serviced-apartments; usually established with a view to generating income for unit holders.

What is a REIT?
01:46

As an investor, you would like to see higher income distribution or capital gains from investing in the REITs just as you would in a stock. To achieve this, a REIT typically uses the following strategies: 

  • Acquisition / Property Rebalancing Strategy 
  • Rental increase 
  • Asset Enhancement and New Property Development Strategy 


How does a REIT generate income?
03:50

Consider if the REIT’s investment objectives suit your personal risk appetite and investment time horizon.

Always read up on the REITs you are considering. REITs can have different structures, geographical or sector focus, and some REITs may carry more risk, such as political and regulatory risk, than others. A REIT with all its properties located in Singapore can carry very different risk from another REIT with its properties located in an overseas country. Make sure you understand the political and regulatory risks of the countries that your REIT invests in. Read the “Investment Approach” and “Risks” portions of your prospectus for information on the various risks of the specific REIT you intend to invest in. 

Key considerations
01:41

The unique characteristics and features of each REIT, such as its portfolio of assets and focus on generating income as regularly as possible, can translate into benefits for investors. 

Benefits of REITS
03:33

The risks associated with a REIT investment vary and depend on the unique characteristics and features of each REIT, as well as the geographical location of the investments. Do not simply look at the expected yield, but also consider the concentration, quality and length of leases of the underlying properties.

Risks and other considerations
02:08
How to select a REIT?
04:32
+ Conclusion
4 lectures 13:41

Here are some quiz questions that test your understanding of REIT investing.

Pop quiz
03:03

Here are some important questions for discussion.

Activity
01:49
Conclusion and FAQs
04:15
FAQs - Part 2
04:34