Reits

I have been thinking about investing in Reits the past 2 months mainly because of the dividend/distribution yields.

I did some googling (these days one can easily find information on the web) on sg reits and came across some very detailed analysis covering this topic in some financial blogs.

Overall it would seem that the analysis are positive towards sg reits.

But after thinking about the business model - Reits distribute out most of it profits and grows it business by buying more assets to generate a higher revenue. I could not convince myself on the business model - Reits does not retain its profits to fund its purchases, the monies has to come from the shareholders by issuing new reits and taking out debt.

Low debt is one of my criterion for picking stocks. Af some mulling, I decided not to add sg reits to my portfoilo.