REIT
Market basicsAlso called: Real Estate Investment Trust
Real Estate Investment Trust — a listed trust owning income-producing commercial property, required to distribute the large majority of its rental income to unit-holders.
In plain terms
Commercial property for a few thousand rupees, sellable in seconds. It is not safe the way a building feels safe: the unit price is market-driven, and rising rates hurt it twice.
Read the full lesson →Net distributable cash flow
Market basicsAlso called: NDCF
The cash a REIT or InvIT has available to hand to unit-holders, the large majority of which the regulations require it to distribute at short intervals.
In plain terms
The reason these units pay out several times what a share does — and the reason a price chart of one omits most of what holding it produced.
Read the full lesson →Total return
Market basicsPrice change plus dividends, the complete return from holding an asset.
In plain terms
A stock yielding 6% while falling 15% is not producing income. Judge holdings on this, never on yield. On a high-payout instrument such as a REIT it is most of the answer, and none of it is on the price chart.
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