REITs 🏠 🏭 - General Chat

Investing and Markets 📈
1

Because of the coming higher than average inflation news, I have been considering to invest in REITs.

However, when I look at most REIT in Freetrade, I notice that they have pretty steep on going charge, for example:

  • Tritax Big Box (BBOX) has over 2% charges
  • Secure income REIT (SIR) has over 5% charges
    Whilst some other REIT like for example SEGRO does not charge at all.

Does anyone investing in REIT understand what does number represent? Is this charge similar to on going charge on ETFs or mutual funds?

2

Where did you find the charges?

3

In the cost and charges section on Freetrade

4

It explains the costs in the KID.basically REITS cost more to run, hence the costs are higher.

5

Yes these are onging costs like annual charges in funds .
The top two examples you give are Investment Trusts & express their charges differently from standard quoted companies like SEGRO which isn’t an Inv Trust but does nontheless have costs to run the business.

6

Tbox Has an annual charge dearer then most; It has an annual dividend yield of 2.97% and an Average Annual charge of 2 91%. Hence NET annual yield is 0.06%!!

Different Reits have different annual charges;
Custodian has an annual charge of 0.63%
in the long run these charges can seriously hurt your wealth due to the effects of compounding.
Some REITs gave an average annual charge of 0.52% yet others can be as high as 10%. And can differ depending on the platform referenced.
In this comment, All figures quoted from HL.

Custodian REIT is, an interesting REIT insofar as the charges are concerned; on Freetrade Custodian’s annual charge is listed as much higher then HL and TBOX is lower on Freetrade then on HL!
I cannot explain nor understand this difference.