Hi everyone on this forum, i'm new to reit investment, at this stage i'm doing some fact gathering.

Can anyone comment on these questions:

1) If i bought a unit of REIT at RM1 and the dividend paid at the time of purchase is reported as 7 sen. That means i have a dividend yield of 7%, is that right?

2) For example, 2 years later, if the price of the unit of REIT that I bought at RM1 goes down to 80 sen, does the dividend paid is still at 7 sen?

3) If the answer to question 2 is yes, then if i buy some more of that REIT at 80 sen per unit, assuming the dividend paid per unit is still at 7 sen, that means my dividend yield is 8.75%, is that right?

4) So it means if the price of the REIT goes down, and assuming the dividend amount paid is the same, then the dividend yield % goes up? Is that right?

I would appreciate if all the REITs sifu here can comment on my questions here.

Thank you.

Care to elaborate further?

Thank you very much on everyone's answers! Just one more question (to see if I understand all the explanations correctly):

So if i bought at RM1, and dividend paid is 7 sen, that means yield is 7%. Then if the REIT price goes down to 80 sen, then my dividend paid will mostly likely be 5.6 sen (but yield still at 7%), is that right?

Please comment.

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Added on November 23, 2011, 12:38 pmHi all Sifus, need further clarification on this:

So if I am looking for a fixed income cash flow every year, then will the price movement of the REITs affect my annual income cash flow?

For example:

If I invest RM10k (on 10,000 units at RM1 per unit) with a yield of 7% p.a, I get RM700 per year.

If 12 months later, the price of the REITs per unit goes down to 80 sen, (my capital invested will have a market value of RM8k), but will the dividend that I get paid stays at RM700 like the previous year? Or it will be at 7% on the RM8k?

Please comment, thank you!

This post has been edited by soongkm: Nov 23 2011, 12:38 PM

Now I'm 100% clear on this aspect! Thank you very much! Everyone is so helpful in this forum!

I see, what you mean is the price is affected by the dividend paid, is that right?

So that means, most REITs will try to achieve the yield based what market expects from it. If well known REITs, they can give less yield, because the market demand for their REIT is high and vice versa.

Do i understand you correctly?

So that means, the general stock market sentiment will have a minimum effect on the REITs price? So REITs share is less likely to be affected by the general stock market sentiment compared to other normal shares?