Real Estate Investment Trusts (REITs) have long been a favourite among Singapore investors. They are prized for their steady dividends and relatively low volatility compared to individual stocks. But not everything you hear about REITs is true. Not understanding how REITs work or believing common myths can lead to poor investment decisions and disappointing returns. Follow as we bust three common REIT myths and show why careful selection and a long-term mindset matter more than chasing short-term yields.Myt ...

Core Viewpoint - Inflation is eroding purchasing power, making dividend stocks that grow payouts faster than inflation essential for investors in Singapore to preserve and enhance their purchasing power [1][16]. Group 1: Dividend Stocks Overview - Four Singapore dividend stocks identified as capable of outpacing inflation include Singapore Exchange (SGX), Parkway Life REIT, CapitaLand Integrated Commercial Trust (CICT), and Haw Par Corporation [2][16]. Group 2: Singapore Exchange (SGX) - SGX operates as a multi-asset exchange providing listing, trading, and clearing services across various markets, benefiting from a monopoly position in Singapore [3]. - SGX has consistently increased its dividend payout, with a five-year compound annual growth rate (CAGR) of 4%, from S$0.32 in FY2021 to S$0.375 in FY2025 [4]. - The dividend payout ratio has remained sustainable, ranging from 60.8% to 76.9%, supported by an 8.4% year-on-year growth in net profit from S$598 million to S$648 million in FY2025 [4]. - At a share price of S$16.82, SGX offers a dividend yield of 2.2% [5]. Group 3: Parkway Life REIT - Parkway Life REIT focuses on a diversified portfolio of healthcare and nursing home properties across multiple countries, delivering uninterrupted distribution per unit (DPU) growth since its 2007 listing [6]. - DPU has increased from S$0.0632 at IPO to S$0.1492 in FY2024, representing a 136% increase [6]. - For YTD 3Q2025, PLife REIT reported a DPU of S$0.1156, up 2.3% year-on-year [7]. - The portfolio's weighted average lease expiry (WALE) is 14.68 years, with a healthy gearing ratio of 35.8% [8]. - At a price of S$4.05, PLife REIT has a dividend yield of 3.7% [9]. Group 4: CapitaLand Integrated Commercial Trust (CICT) - CICT is Singapore's largest retail and commercial REIT, with a portfolio that includes retail malls and office towers, allowing for upward rent repricing [10]. - The portfolio occupancy rate is 96.3%, with retail and commercial occupancy rates at 98.6% and 94.6%, respectively [11]. - CICT's DPU has shown stability and growth, increasing from S$0.1058 in FY2022 to S$0.1088 in FY2024 [11]. - At S$2.32, CICT offers a dividend yield of 4.8% [12]. Group 5: Haw Par Corporation - Haw Par operates in healthcare, leisure, property, and investments, known for its Tiger Balm brand, generating stable recurring dividend income [13]. - From FY2020 to FY2024, the dividend per share increased from S$0.30 to S$1.40, with a sustainable payout ratio between 38.8% and 60.2% [14]. - In the latest financial year, 73% of earnings came from investments, with a dividend yield of 2.6% at a share price of S$15.49, excluding a special dividend [15]. Group 6: Investment Implications - With Singapore's inflation projected at 0.5% to 1.5% for 2025, these dividend growers provide meaningful real returns above inflation, making them essential for protecting purchasing power [16]. - Focusing on dividend growth rather than just yield is crucial for long-term inflation protection [17].

Core Viewpoint - The article highlights three companies that offer high-yielding and steadily rising monthly dividends, making them attractive options for generating passive income [1][2]. Company Summaries EPR Properties - EPR Properties is a real estate investment trust (REIT) that focuses on experiential real estate, such as movie theaters and attractions, leasing properties under long-term triple-net leases [3][4]. - The current monthly dividend yield is 7.2%, with an expected annual dividend of $3.54 per share, representing a 3.5% increase from the previous year [4][6]. - The company plans to invest between $225 million and $275 million in development and acquisitions this year, which supports its ability to increase dividends [6]. Stag Industrial - Stag Industrial is a REIT that invests in industrial real estate, including warehouses and light manufacturing facilities, with long-term leases that often include rental escalation clauses [7][10]. - The current dividend yield is 3.9%, and the company has consistently raised its dividend since its IPO in 2011 [10]. - Stag Industrial expects to acquire properties worth between $350 million and $650 million this year, with over $200 million already acquired by the end of October [9][10]. Realty Income - Realty Income is a diversified REIT that owns various properties leased to leading companies, generating durable cash flow to support a 5.8% dividend yield [11][14]. - The company has a conservative dividend payout ratio of about 75% of its adjusted funds from operations (FFO), allowing for substantial free cash flow for new investments [13][14]. - Realty Income plans to invest $5.5 billion in acquiring more income-producing real estate this year and has raised its monthly dividend 132 times since its public listing in 1994 [14][15].

Core Insights - Uncertainty regarding job stability is negatively impacting demand for apartments, coinciding with a period of cooling asking rents [1] Group 1: Job Market Impact - The current job market uncertainty is leading to decreased consumer confidence, which in turn affects the demand for rental apartments [1] - As job security becomes a concern, potential renters are hesitant to commit to new leases, further dampening demand [1] Group 2: Rental Market Trends - Asking rents have shown signs of cooling, indicating a shift in the rental market dynamics [1] - The combination of job market uncertainty and cooling rents suggests a potential slowdown in the rental market's recovery [1]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on Real Estate Investment Trusts (REITs) [1] - He has a background in business information systems and experience at Charles Schwab, which supports his analytical capabilities in equities research [1] - Anthony operates his own boutique equities research firm, Albert Anthony & Company, remotely from Texas, and is actively involved in the REIT investment space [1] Company Background - Albert Anthony & Company is a Texas-registered business that provides market commentary and research based on publicly available data [1] - The firm does not manage client funds or provide personalized financial advisory services, focusing instead on general market insights [1] Author's Qualifications - The author holds a B.A. in Political Science and certifications in Microsoft Fundamentals and CompTIA Project+, with ongoing education in Capital Markets & Securities Analyst and data analysis [1] - His expertise is aimed at streamlining the equities research process and delivering actionable insights to readers [1] Media Presence - Anthony is expanding his presence on YouTube, discussing REITs and sharing insights as an active investor in REIT stocks [1] - He has participated in numerous business and innovation conferences, enhancing his visibility in the financial community [1]

Core Viewpoint - Alexandria Real Estate (ARE) shares experienced a significant decline following the release of its Q3 results, prompting investor interest in potential buying opportunities due to the selloff [1]. Company Summary - Alexandria Real Estate reported disappointing Q3 results, leading to a sharp drop in its stock price [1]. - The company is categorized as a Real Estate Investment Trust (REIT), which typically focuses on generating income through property investments [1]. Investment Strategy - The investment strategy highlighted involves focusing on strategic buying opportunities, particularly in dividend and value stocks, which has garnered a strong following and positive ratings on investment platforms [1].

Core Insights - Blue-chip stocks are often perceived as safe investments, but this belief can lead to missed opportunities and unforeseen risks [1][2] Myth 1: Blue-Chips Are Always Safe and Risk-Free - Investors mistakenly believe that blue-chip stocks are immune to risks, but even established companies can face challenges [3] - Singtel's EBIT margin decreased from 32% in FY2015 to 19% in FY2021 due to competition and rising 5G costs, highlighting that blue-chip status does not guarantee stability [4] - CapitaLand Integrated Commercial Trust experienced pressure on unit prices despite high occupancy rates, demonstrating vulnerability to market changes [4] Myth 2: Blue-Chips Don't Deliver Growth, Only Stability - Contrary to the belief that blue-chips cannot grow, some companies continue to achieve significant growth [5] - ST Engineering reported a 7.2% revenue increase to S$5.9 billion and a nearly 20% rise in net profit to S$403 million in the first half of 2025 [6] - DBS Group's dividends increased nearly 15% annually from 2019 to 2024, showcasing the potential for growth among blue-chip companies [7] Myth 3: Blue-Chips Don't Need Monitoring - Continuous monitoring of blue-chip stocks is essential, as business conditions can change [8] - Mapletree Logistics Trust saw a 12.4% year-on-year decline in distribution per unit in Q1 FY25/26, despite previously being viewed as a reliable REIT [9] - Rising finance costs and underperforming portfolio segments can negatively impact cash flow and dividends, emphasizing the need for regular evaluation [10][11] Implications for Investors - Blue-chips should be treated as core holdings but require the same level of scrutiny as any other stock [13] - Investors should review fundamentals quarterly, compare dividend growth to earnings growth, and monitor competitive and economic conditions [14] - Identifying blue-chips that are still growing and rewarding shareholders can lead to valuable investment opportunities [15] Strategic Approach - Blue-chip status provides a strong foundation, but active monitoring and strategic position sizing are crucial for portfolio growth [16] - The combination of blue-chip stability with diligent oversight can enhance investment success [17]

Core Viewpoint - High-yielding dividend stocks such as Enterprise Products Partners, Realty Income, and Main Street Capital are highlighted for their durable and steadily rising dividends, making them attractive options for passive income generation in 2026 [1][15]. Company Summaries Realty Income - Realty Income currently pays a monthly dividend yielding 5.8% and has a flawless record of increasing its payment at least once a year since its public listing in 1994, totaling 132 increases [3][6]. - The REIT generates stable cash flow from a diversified portfolio of commercial properties secured by long-term net leases, which provide steadily rising rental income [4][6]. - Realty Income maintains a conservative dividend payout ratio and a strong balance sheet, allowing for investments in new income-producing properties to support ongoing dividend increases [6]. Enterprise Products Partners - Enterprise Products Partners offers a distribution yield of 7.2% and has increased its distribution for 27 consecutive years since its IPO [7][9]. - The company operates under long-term fee-based contracts, ensuring stable cash flow, and retains a portion of its earnings for expansion projects [9][10]. - A major multi-year expansion phase is concluding, which is expected to enhance earnings and free cash flow, allowing for increased cash returns to investors in 2026 [10]. Main Street Capital - Main Street Capital has a unique dividend policy, paying a monthly dividend that has never been suspended or reduced, with a current yield of 7.6% [11][13]. - The company has increased its monthly dividend by over 130% since its IPO in 2007 and also pays supplemental quarterly dividends to meet IRS requirements [11][14]. - Main Street Capital provides debt and equity capital to smaller private companies, with strong income streams supporting its dividend payments and growth [14].

Group 1 - The company has received over 500 five-star reviews from members who are benefiting from its investment strategies [1] - The company invests significant resources, over $100,000 annually, into researching profitable real estate investment opportunities [1] - There is a growing interest in identifying the best REITs to invest in as the year-end approaches [1] Group 2 - Jussi Askola, President of Leonberg Capital, is recognized for his expertise in REIT investing and has authored award-winning academic papers on the subject [2] - The investment group High Yield Landlord, led by Askola, offers real-time insights into REIT portfolios and transactions, including buy/sell alerts and direct access to analysts [2]

Core Insights - The article focuses on Vornado Realty Trust (VNO), one of the oldest and largest REIT companies that owns commercial and office properties in New York [1] Company Overview - Vornado Realty Trust is highlighted as a significant player in the commercial real estate sector, particularly in New York [1] Investment Strategy - The article mentions Denislav Iliev, an experienced day trader with over 15 years in the field, who leads a team of 40 analysts at Trade With Beta [1] - The team specializes in identifying mispriced investments in fixed-income and closed-end funds using straightforward financial logic [1] - Features of the Trade With Beta service include frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1]