A complete guide to REITs Malaysia | Real estate investment trusts

REITs or real estate investment trusts are an excellent investment for beginners. REITs allow investors with smaller capital to gain exposure to a diversified portfolio of real estate - earning income in the form of high yield dividends and capital gains. This form of property investment is passive - so you can sit back, relax and let that rental income trickle in over time!

You can buy REITs on local stock brokerages, and I use Rakuten because it's easy to use, has low fees, and are introducing US stock trading soon!

Referral link if you're interested, we both get 500 Rakuten Points when you sign up:
https://www.rakutentrade.my/device/accountopening?referralcode=4108CAZGLJ&mode=web

You can also checkout UOB Kay Hian, RHBInvest or Malacca Securities. These come recommended from friends of mine :)

Time stamps:
0:00 Introduction
00:24 What are REITs?
01:17 Advantages of REITs
04:52 Disadvantages of REITs
05:58 Risks of REIT investment
06:50 How to pick a REIT stock
07:51 Historical returns of Malaysian REITs
09:16 Other things to consider
*Disclaimer - I am not a professional fund manager/stock picker, just a nerd. So please do your own research as well!

While there are many different ways to value REIT stocks, my personal preference is to compare REITs across board by looking at the historical annualised returns, which I have calculated like so:
1. Capital gain included by taking the difference between share price now (Dec 2020) and its IPO price.
2. All historical dividend pay-outs are included, which is adjusted assuming subscription to all corporate actions (stock splits, rights issues)
3. Total return per share = capital gain + total dividend yield
4. Annualized return calculated based on number of years since IPO, assuming share was purchased at the IPO price.

Based on historical annualised returns, the top 5 Malaysian REITs are as follows:
1. AXREIT - 11.8%pa
2. SUNREIT - 10.5%pa
3. PAVREIT - 10.0%pa
4. IGBREIT - 8.2%pa
5. ALAQAR - 7.1%pa
FYI, historical annualised returns for EPF = 6.16%pa and ASB = 7.94%pa for the past decade

Of course, past performance does not guarantee future returns, and so I highly recommend researching further into these 5 REITS before you buy anything!

Видео A complete guide to REITs Malaysia | Real estate investment trusts канала Swan Thinks