InvestNow News – 20th Dec 19 – APN – Diversification, income focused and lower risk
1. WHAT ARE REITS AND WHY SHOULD INVESTORS USE THEM?
Real Estate Investment Trusts (REITs) have unique characteristics that can make them attractive to both income and growth investors. REITs own property and pass the rent collected from tenants that occupy those properties onto investors in the form of dividends.
Listed on the stock exchange, REITs are listed investments, trade just like stocks and are therefore liquid. They can fluctuate in price, but they also pay out a large part of their income in the form of dividends.
REITs are a good way for investors to access the income and capital returns of high quality commercial real estate, without the headaches and hassle of directly owning the properties.
2. WHY THE APN ASIAN REIT FUND IS A GOOD ALTERNATIVE FOR INCOME FOCUSED INVESTORS
REITs, as opposed to real estate developers, receive special tax treatment by not being required to pay corporate tax, but have to meet a number of requirements to qualify as a REIT.
One such requirement is the income generated by REITs is mandated to be passed on to investors in the form of dividends. As a dedicated property investment house, APN believes strongly in the income benefits of investing in commercial real estate and Asian REITs are an ideal fit for the APN philosophy of investing in “Property for Income”.
Our flagship APN AREIT Fund was built on this premise which led to it being one of the largest property securities funds in Australia. We launched the Asian REIT Fund to offer our investors the same income benefits of investing in commercial real estate locally, but with smart diversification, focussing on the globalised cities of the world’s fastest growing region – Asia.