9/10/2015 (2) (REITs 2) In this context, we are discussing the public-listed equity REITs (“REIT”). Investment in REITs is a simpler way to invest in real estate. There are tight regulations imposed by the regulators on the management and reporting of the REITs. You can easily compare the REITs across the market as their audited financial reporting are easily accessible. Not to forget managing a real estate isn’t a simple task; it requires lots of monitoring, maintenance works and specialized knowledge like tax knowledge, you are handling them to the experts. As for S-REITs investors, they enjoy tax advantaged status where the tax is only payable at the investor level and not the REITs level, which means the revenue are not being double taxed. REITs also offer a bit of safety net to investors, as the investors always have the rights to the underlying property in the trust. In comparing REITs, you may use ratios like “distribution per unit” (DPU) which measures the dividend earned per unit. Another measurement of REIT earning is “funds from operations” (FFO) which the computation is excluding extraordinary incomes, sales of property, depreciations and amortizations. You may also take a look at the leverage level of the REITs. The higher the leverage level it has, more impact it will have in the event of interest hike. Country risk and sector risk are another risk that will impact the performance of REITs. If you invest an international REIT, you also subject to foreign exchange risk. Last but not least, overall stock market sentiment also impacts the price of the public-listed REITs.