REIT (9)

Risks(1)

Distribution is subject to cash availability

If the real estates of the REITs do not generate sufficient net operating profit and cash flow, the REITs ability to make distributions will be adversely affected.

Returns are not guaranteed

The dividend payments from investing in REITs are not guaranteed and the total return of REITs, amongst others , is subject to the performance of the property market.

Hence, the unit price of a REIT may go down if its underlying properties drop in value.