Refer to my previous post on
REITs Investment Performance as at 31-May-2010, my REITs portfolio has grown another 0.8% in annualized return, from 21.1% to 21.9%, within 2 months. This impressive return are main contributed by outstanding yield from HEKTAR and AXREIT which are generating 32.7% and 44.1% annual compounding rate.
Accept the fact that other good counters in Bursa were actually performing much better than REITs. For example, my MAYBANK's holding was giving me a annual return of 67.3% as of 31-July-2010 for a holding period of a year and four months.
No matter you are buying REITs or other counters, there is, of course, another important factor that contributes terrific gain. That is buy them when they are really cheap. Majority of my current holdings were bought in early 2009 when market was so pessimistic.
As of my opinion, REITs is a good vehicle to generate stable and impressive income with relatively stable pricing. I might treat it as one of my income source during retirement. If you have extra fund (after consideration of emergency buffer requirement) and have no idea where to invest, instead of putting it in low risk low return FD, do consider REITs. Of course, some homework before any investment need to be done beforehand.
Good luck.
When anwsering the questions raised by one of my readers, I realize that there was an error printing on Table 11-1 of my book, Freedom. Taking this opportunity, I would like to thank for all the feedback from my fellow readers. You feedback will indeed allow me to give your better in the future.
Few months ago, I received an inquiry on asking my comment on applying analytical skill on Mutual Fund and Real Estate Investment Trust.
There are comments that emphasize leverage works well on direct property investment but not REITs. Real estate leveraging means you are using other people’s money (such as housing loan from bank) to invest in properties. You may rent out your investment properties for rental in the expectation that net rental received (after installment as well as all related charges, expenses and/or opportunity loss) able to provide impressive return over your investment outlay. 
