REIT investors reap rewards

REIT investors reap rewardsThe Australian Financial Review (AFR) reports that investors in real estate investment trusts (REITs) will receive a $3.5 billion windfall as part of the biggest distribution payout in the sector’s history.REITs will live up to their reputation as this year’s most-loved listed sector when the half-year distribution season begins this week with an estimated 10.2 cents distribution from Westfield Retail Trust.The season will finish at the end of August and see REIT investors well rewarded for their support of the sector despite subdued performance in the retail and office sectors.The AFR says REIT prices have been boosted by several factors, including falling bond rates, investors searching for secure yield, rising underlying values, and merger and acquisition activity.Among the companies delivering an increase in payout is the Australand Property Group, which says its operating earnings are up 20 to 25 per cent this year.REITs with substantial fund management operations, such as Charter Hall Group, have also experienced an increase in operating earnings this year, and have delivered better-than-average growth in distributions.The bonanza payout comes after REITs delivered some $2.6 billion earlier in the year when they paid out generous half-yearly dividends.