My thoughts based solely on theory...
Probably in theory yes it might do the trick...

The performance of the Reit counter,
other factors like act of god (entire building got burnt down  )
sudden announcement stating no dividend for that year 
negated market volitility,
top ups (margin calls),
Fees/Expenses, cost, losses that you need to finance your purchase,
commitment fees
rollover fees
taxes
commission

etc.....

If you are certain that the price of the reit will not fall,and the  total yearly distribution will remain or increase,and that interest rate  charged will remain unchanged,then it is worth trying.

But nothing is certain in this world.Also bear in mind that single stock financing is not acceptable to many broking firms.

Yes, this is what we call carry trade.

This is always a risky move. Only do if you afford and dare to take the risk and fully aware the consequences.
Lot of people burnt more than people gain through this way, because of greed and timing. Main reason, people only want to do margin facility when market is bullish time aka market has run up significantly only then people turns more greed want to trade more so using margin.

If market turns out to be good, one can get wealthy very fast, as you put on leverage, people gain 1 you gain 2, so multiply the long term and repeating effect, you will be rich very soon.
People go from 1 to 2 to 4, you go from 2,4,16.

If market turns out to be against you, double trouble, loss on capital while still need to pay interest, worst still can't meet margin call, then have to sell everything to repay. Even market does rebound back, you actually game over as you have to sell everything you got.

One word, nothing is predictable in stock market and market always not behaving what people expected.