Globe & Mail on REITS – “Is it too late to make money on REITs?

“Most Canadians don’t need to be told the country’s real estate market has been a big money-maker over the past several years.

But of course there’s more to real estate than houses and condos. Retail, office and rental properties are also a huge part of the real estate scene – and these sectors have also been enjoying nearly a decade of strong growth. Not many individuals manage to participate directly in the sector – but investors have been able to tap into its growth through REITs – real estate investment trusts.

These investment vehicles own commercial real estate properties and are required by law to pay out a fixed portion of their taxable income to shareholders. They trade like individual stocks and typically pay a yield of 5 to10 per cent to their investors.

For the past few years REITs have been one of the best-performing investment classes in Canada. The number of firms on the S&P TSX REIT Index has more than tripled in the past four years – and that doesn’t take into account the income payouts the REIT holders have enjoyed.”

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