In Singapore, you can hardly have a discussion about investments without a mention of REITs — an asset class known for their high yields and ability to generate a passive income stream.

A REIT is a company that owns, operates and invests in an income generating real estate asset by pooling together investors’ capital. The REIT leases out spaces within the property, collecting rent in return. This rental income collected by REIT will form the yield that is distributed back to shareholders as dividends.