QUOTE(cherroy @ Sep 12 2019, 05:04 PM)
If one is selecting reit based on higher dividend yield, then one can easily fall into so called yield trapped, similar to low PE trap story in ordinary stock.
Those with high yield one, generally their properties lease is more risky.
Those are more susceptible to glut problem or downturn time, that's why they are higher risk, because investors demand higher yield to compensate the risk taken.
In fact, if we look back, those performing reit generally are those so called low yield reit, because those reit have prime properties and has no problem to secure lease.
Reit is all about "rent it out", a simple story to tell.
Thanks. Will take note on this.Those with high yield one, generally their properties lease is more risky.
Those are more susceptible to glut problem or downturn time, that's why they are higher risk, because investors demand higher yield to compensate the risk taken.
In fact, if we look back, those performing reit generally are those so called low yield reit, because those reit have prime properties and has no problem to secure lease.
Reit is all about "rent it out", a simple story to tell.