Jussi Askola, an experienced REIT investor and CFA, warns that high-yield Real Estate Investment Trusts (REITs) often become traps for investors. He highlights that Funds From Operations (FFO) can be misleading if capital expenditures (capex) are ignored, and that leverage may seem manageable until a financial crisis occurs. Askola shares insights from his real-money REIT portfolio and emphasizes caution when investing in high-yield REITs due to these hidden risks.
As of Oct 17, 2026 18:21 WIB, the Vanguard Real Estate Index Fund ETF (VNQ) trades at USD 91.76 with a modest gain of 0.35% on Pluang, reflecting steady interest in real estate assets. Alexandria Real Estate Equities Inc (ARE), a notable REIT, is priced at USD 41.62 but has declined 1.70% in the last day, while maintaining a dividend yield of 6.92%. Pluang investors hold ARE for an average of 94 days, showing a balanced approach to REIT investment amid the caution highlighted in the article.
