Why?
SG reits yield is lower. 

In current worldwide environment, 7% is considered pretty high return rate.

Very little investment product can come out with 7% yield (if capital appreciation doesn't take into account).

10 years US treasuries 2.6%
Aussie FD (considered one of highest in the world) 4.5%
Malaysia FD around 3%.
Own your residential properties, most around or below 5% net yield only.
Ordinary stock dividend, 5-6% is considered high already.

If you expect a 14% yield, sorry, none. Except when fire-sale time, especially during crisis unfold.

There is one time Axreit got 14% yield, during 2008, when it dropped to Rm1.00, with DPU around 14 cents.
But this was during financial crisis, and lot of risk and uncertainty involved that time, issue like :
1. Re-financing of loan might not able to get, which could trigger the fire-sale of reit properties and collapse of reit,
2. Can't get tenants due to severe recession etc.

We need to know why, as we are just aftermath of greatest financial crisis, that cause a lot of oversea reit meltdown, so skeptic on reit is still everywhere.

While currently, economy is seems to be stalling, and people only willing to buy reit at discount rate. Nobody want to pay a premium on them as some investors may still scare about the market.

If flip back prior before 2008 crisis, reit was trading at premium mostly because the properties market looks rosy.

It is about investors risk appetite and optimistic about properties and particular reit sector.

You need to look on yield issue to compare with as well.

For eg.
A reit with NAV 1.00, but DPU only 5 cents. Little people want to buy this reit above the NAV, as yield is not attractive at all if above NAV level.

Ans : Agreed ! I do the same too.

B reit with NAV 1.00, but DPU is 10 cents, most investors willing to pay above the NAV to get this reit, and yield is attractive.

Ans : Agreed ! I do the same too.

Do remember, NAV is adjusted upwards due to property revaluation, but yield/rental wise will remain the same until there is renewal of lease with upwards revision on the rental rate.

Ans : Agreed on the whole, but there is still another way whereby a REIT can collect more rental, ie if the REIT makes an acquisition which is yield-accretive, and the interest paid (if the REIT chooses to use debt to fund the acquisition) is less than the rental collected. Then, rental-wise, it will go up.

Reit price moves more towards on yield issue as compared with NAV.

Ans : Well, I look at the NAV too for safety factor.

they are any REITS.

they dun have to issue new shares to buy new properties, they can make term loans etc.

lets assume Qcapita market price rm1.03 and NAV is rm1.21. they want to buy a new property at rm50m.

so ... they can buy the property using loan of rm50m.

in the balance sheet, assets will be plus ~ rm50m and liability will also be plus ~ 50m too. This will results in NAV still maintain at same price @ rm1.21.

They can just take on more liability to buy assets but they usually dun do 100% debt financing. Otherwise, their gearing will sky rocket. They will do mixture debt and equity financing.

we have new reit today.. amanah hartanah bumiputra just lunch limit only 200k per bumi person.. hope can bit the all reit performance in stock exchange.

price is just rm 1 and if can get 5 sen - 6sen per annual is can be consider good compare ordinary reit investment . The best part is hope this U.T dividen is not being tax. 

twice a year

sudah beli.. look at propektus.. one one lease building located at putrajaya.. tesco setia alam. and other 3 building.. the tenant from goverment agency and good private company.. so for me good for invest la..

i buy for appreciation and dividend

hi a new REIT investor here.
what if i want to invest in singapore REITs? i know its possible but the brokerage and other charges seems to be rather high, so if I want to invest what is the min lot that is recommended to buy so that the high brokerage and whatever charges is worth it?

@Hansel

i heard that u can earn 25%/month from Australia fund?

eh malaysia 1 lot is 100 shares,in singapore its 1000 shares for 1 lot?
anyway thanks for the info

No, it is the same whether semi-annually or quaterly for yield calculation on reit front.

The compounding effect from quarterly distribution, which let us to reinvest is very minimal, and trivia.