I have been studying this REIT,and at current prices, I think it is a buy. Unfortunately, I dont like their plans going forward because they seem to be buying property with very low rental yields. 8% and 7.2% rental yields is not attractive at all!!"The listed fund says it is currently considering the purchase of a hotel valued at Sh2.5 billion with an annual rental income of Sh205 million, translating to an eight per cent yield.

The unnamed hotel occupies a space of 115,690 square feet. Fahari is also looking at an office building priced at Sh1.8 billion with an annual rental income of Sh132 million, representing a 7.2 per cent yield. The office building has 80,000 square feet of space. ". If all complete properties are expensive, they should consider building their own new properties for rent because those rental yields are too low.
Link: http://www.businessdaily...42044-i3fqho/index.html

Not bad.As long as management remain competent,this is a guaranteed source of annual income as the reit gives out minimum 80% distribution to unitholders.

You forget that a yied of 7% and the property will be partly financed through loans. That yield assumes 100% occupancy which is not always the case. At 7% or less rental yield, and with interest payments that fall due, how much will they be actually making??? The big question, does it make financial sense to invest in a property yielding 7% or less using a loan???