【REITs Hong Kong 2025】Real Estate Trust Funds Investment Guide

Possessed, no life? Buying property, excluding self-stay, can be rented for a steady, passive income that is not independent of its own source. Do people want to own property, and do they want to buy property? No real estate at hand now, you can rent! This is through one investment product — REITs (Real Estate Trust Funds).

What are REITs?

REITs in Chinese refer to Real Estate Investment Trust Funds, which is an abbreviation of Real Estate Investment Trusts. REITs are a special investment tool that primarily invests in Real Estate Related Assets, such as Commercial, Residential, Hospitals, etc., generally managed by Real Estate Management Companies.

Advantages of investing in REITs

Each investment product has its advantages and risks. Remember to assess your needs and tolerable risks before investing.

Benefits of REITs

1. Strong profitability: REITs are performing well and earnings in general are not very stable. Since the source of income is different from rent and housing management fees, there are no large-scale agreements between tenants and enterprises, and the cash flow will be stable in the base. In addition, according to the Hong Kong Securities Regulator, Real Estate Investment Trust Funds have a share ratio of at least 90%, which means that the resulting wallet will be delivered to the shareholders, and the yield will be higher than that of ordinary stocks. On the other hand, as REITs are exempt from corporate tax, profitable investors benefit from higher income.

2. Spreading Risk: REITs typically have many different types of Real Estate Asset Assets that can effectively spread investment risk. In addition, REITs can be a part of the Stocks portfolio, while also helping to spread investment risks and increase overall returns.

3. Low Investment Doors, Strong Liquidity: Stocks in REITs are traded on the stock market, investors can buy and sell at any time, with strong liquidity. The purchase price is much lower than the purchase of real Real Estate, and the cost of entry to the site is not equal to CNY to $1 trillion.

4. Anti-Collision: Real Estate Asset Assets usually have the ability to borrow money, so ReitsReits will increase in price and share will increase accordingly.

Risks of REITs

1. Low growth potential: REITs are primarily based on rental income, so rent increases for a group of real estate are not normally possible, so it is likely to have a direct bearing on the rental rates of the REITs.

2. Interest Rate Risks: Interest rates are highly correlated to the price of Fixed Income Funds and are likely to reflect the cost of investing in real estate markets rather than investing outside. REITs are generally more likely to borrow, and rising interest rates may increase borrowing costs and profit.

3. Management Risk: Investment and operating strategies in REITs depend on the management company's expertise, and poor management can lead to losses.

4. Renter risk: The income of the REITs comes from the rent, if the tenant finds it impossible to continue the lease or the termination of the contract, or the income of the REITs will be affected. Beyond that, as tenant demand declines, REITs will have an impact on the Operating Status.

What is the difference between REITs Stocks and Real Estate Shares?

We can divide REITs into Stocks and Real Estate Stocks in 6 areas:

• 1. INVESTMENT METHOD

  • REITs primarily benefit from purchasing and managing various types of Real Estate Asset Assets, Direct Investment Real Estate.

  • Real Estate Shares can simultaneously invest in real estate from businesses other than real estate investment and development activities, such as real estate developers and construction companies.

• 2. Source of income

  • The main income of REITs comes from rental income and real estate appreciation.

  • The gains in real estate stocks come mainly from the increase in stock prices and dividends.

• 3. Distribution Policy

  • REITs are legally required to distribute at least 90% of the proceeds to Shareholders as dividends.

  • Dividend policy for real estate stocks is determined by the company itself, and distribution ratio uncertainty is higher.

• 4. Regulators

  • REITs are regulated by third parties. Appointed to supervise the operation of the Funds independently of the Trustees, and to supervise the Assets on behalf of the Fund Unit Owners. Real estate shares monitor the operations of directors and executives, manage the operations of the company, or have a profit risk.

• 5. Tax Benefit

  • REITs are exempt from capital gains tax and are not subject to dividend tax in Hong Kong investment REITs.

  • Property shares are subject to profit tax, while investors are also liable for personal income tax.

• 6. Investment Risk

  • REITs are primarily invested in Real Estate Asset Assets, Assets, Industry Risk Related Groups.

  • Real estate stocks are affected by the market and are also highly volatile. When local real estate companies finance borrowing money, the lending rate is decided by the market.

In other words, REITs are more important than investing directly in Real Estate Assets Assets and obtaining a stable rental income. They are not just investing in a direct investment and obtaining a stable rental income, they are not just investing in a real estate property, RealEstate, a rental property, a rental property Generating RealEstate and leasing shares are more important than real estate equity, and leasing or real estate equity interests are related to real estate real estate investment and share price increases.

How many REITs can I invest in Hong Kong?

Wanted in Hong KongInvesting in REITs, Select shares of REITs that invest in Hong Kong stocksShares of REITs in US stocksOr investors invest in REITs ETFs. Currently listed REITs in Hong Kong have 11, the highest market capitalization on the market, and the second largest number of blue-chip REITs out of 62 USA-listed REITs, and the largest number of standard REITs is the Vanguard Real Estate ETF.

You can also find outAustralia REITs Investment Guide，Canada REITs Market Investment Guide

5 Most Active REITs in Hong Kong

How to Invest in REITs in Hong Kong?

You can buy REITs immediately if you only need to open a Stocks account with Futu:

1. Go toFutu Internet, and register a new account.(Register now)

2. Open a securities account with a Futu account, click the button below to open it instantly and enjoy the opening bonus of up to USD.(How to open an account)

3. Deposit funds via EDDA, Fast Transfer (FPS), Bank Transfer Deposits.(How to Deposit Funds)

4. Download the Futubull App and log in.(Download now)

5. Enter the name or symbol of your heart's REITs in the search bar, and then click Trade.