Real estate investment trusts (REITs) are listed companies that own income-producing real estate—logistics parks, data centres, apartments, healthcare facilities, and retail centres. By law, REITs must distribute the majority of their taxable income to shareholders in the form of dividends to qualify for favourable tax treatment. This pass-through structure is why REITs are one of the most dependable sources of cash flow in equity markets.

Investors can own REITs directly or through global property ETFs, which hold hundreds of these companies in a single, tradeable instrument. This approach spreads risk across sectors and geographies while delivering regular distributions.

Since 1990, Nareit data shows that dividends have contributed roughly 60% of total REIT returns. A $100,000 REIT portfolio that reinvested dividends over the past decade would have compounded significantly faster than price-only returns because reinvested dividends buy more shares, which generate even more income.

Dividends also make REITs attractive to investors who want a balance of growth and income. Over long periods, the combination of dividend income plus moderate price appreciation has made REITs competitive with equities — but with a higher proportion of return coming from cash.

Most REITs and dividend ETFs pay quarterly, with some paying semi-annually or monthly. Understanding these schedules helps investors plan cash flow or reinvestment strategies

Why Dividends Matter More When Markets Are Volatile

When markets are choppy, dividends provide a steady anchor.

• Anchor total return. Even when prices swing, a consistent cash yield keeps you compounding through reinvestment or funding spending needs without selling at a loss.
• Reduce panic. Dividends give investors a reason to stay invested — being paid to wait makes holding through downturns easier.
• Reward patience. In 2022, when many global REIT indices posted negative price returns, distributions still delivered positive cash income and softened drawdowns.

History offers other examples: during the pandemic selloff in 2020, many high-quality REITs maintained or quickly reinstated dividends. Investors who held on or reinvested those payouts saw faster recoveries in both income and capital value.

Dividend-focused funds saw their strongest inflows in three years during 2025 as investors sought stability. Real estate remains one of the highest-yielding equity sectors, making it a natural anchor for an income investing strategy.

How REIT Dividends Work (and What to Look For)

A REIT collects rent, pays expenses and interest, then distributes the remaining cash to shareholders. To judge dividend quality, investors focus on:

• Cash flow coverage. Funds from operations (FFO) or adjusted FFO should comfortably cover payouts.
• Lease structure. Long leases with annual escalations or sectors with quick rent resets — like residential or storage — protect income through different cycles.
• Debt profile. Moderate leverage, a balanced maturity ladder, and fixed-rate debt reduce exposure to rising interest costs.
• Sector mix. Industrial REITs may yield 3–4% but grow faster, while retail or healthcare REITs may yield 6–7% and provide steady cash flow. A global real estate ETF combines these for balanced yield and growth.
• Distribution options. Reinvest via a DRIP to compound returns or take cash if you need spending income.
• Tax treatment. For South African investors, JSE-listed global property ETFs handle foreign withholding tax at fund level, simplifying reporting and compliance.

Dividends’ Share of Long-Term REIT Returns

Dividends have historically been the largest contributor to REIT total returns. According to Nareit, over 60% of listed property’s total return since 1990 has come from dividends.

Even in down markets, dividends tend to hold. In 2022, when global REIT prices dropped sharply, distributions still delivered a positive cash yield. Investors who reinvested were effectively buying more shares at lower prices, boosting their future income base.

(Source: Nareit, MSCI World Real Estate data)

Price moves are temporary. Dividends keep paying and, for many REITs, they grow over time as rents rise.

Diversifying Income Across Sectors and Regions

Listed property lets investors collect income from multiple sectors worldwide, smoothing total cash flow across cycles:

• Logistics & Industrial: Moderate yields (3–4%) but strong rental growth from e-commerce and supply chain needs.
• Data Centres: Lower current yields but rapid dividend growth as AI and cloud demand surge.
• Residential: Frequent rent resets allow income to keep pace with inflation.
• Self-Storage: Above-market yields and quick lease resets make this sector resilient even in slower economies.
• Healthcare & Seniors Housing: Defensive sector with demographic tailwinds.
• Retail: Necessity-based centres provide higher yields, though tenant mix quality is key.
• Office: Still selective. Prime locations, flight-to-quality tenants, and conservative debt structures are essential for income stability.

Geographically, Asia-Pacific REITs currently offer some of the highest yields globally, North America leads in dividend growth and liquidity, and Europe is stabilising as inflation pressures ease. Global property ETFs spread income sources across regions, limiting dependence on one economy.

Rates, Inflation, and Dividend Resilience

Many REIT leases include annual escalations linked to inflation. This allows dividends to grow even in periods of rising prices, helping investors protect purchasing power.

When interest rates peak and start to stabilise, REITs have historically outperformed broader equities over the next 12–18 months. Lower refinancing costs free up more distributable cash, supporting higher payout ratios. This is why today’s pause in rate hikes is significant — it can be the turning point for income-focused investors.

Dividend ETFs vs Picking Individual Stocks

Building a portfolio of individual dividend stocks or REITs takes research and monitoring. A dividend ETF or global REIT ETF packages dozens or even hundreds of these securities into a single trade.

• Diversification: Income from logistics, residential, data centres, and more — all in one vehicle.
• Efficiency: Automatic rebalancing and quarterly income distributions.
• Liquidity: Daily tradability without the cost or admin of buying multiple international shares.

Global property ETFs are a simple way to access this diversified dividend stream while avoiding single-company risk.

Reitway Global’s ETFs for Income

Reitway offers five JSE-listed ETFs that cover the global listed property market. For investors focused on income, the Reitway Global Property Income Prescient ETF (RWINC) targets higher-yielding securities while managing downside risk.

Other ETFs in the range offer broad index tracking, ESG-screened exposure, active selection, or diversified strategies with a performance target. Together, they let investors customise their portfolio for yield, growth, or a mix of both.

Building a Practical Income Plan

A disciplined process helps investors make the most of listed property dividends:

1. Define the goal. Decide on the percentage of your portfolio you want to dedicate to income.
2. Choose the vehicle. Select the ETF or mix of ETFs that match your yield and risk profile.
3. Size the allocation. Balance listed property with equities, bonds, and cash.
4. Stage entries. Spread purchases over time to smooth market timing risk and capture upcoming distributions.
5. Reinvest or withdraw. For example, a R500,000 allocation to RWINC at a 5% yield would generate roughly R25,000 in annual income before reinvestment. Reinvesting those payouts could compound the income stream to more than R32,000 annually over five years.
6. Review quarterly. Focus on dividend sustainability and sector health rather than short-term price moves.

Key Risks to Income and How to Manage Them

• Interest-rate risk: Rising rates can pressure valuations and, in highly leveraged REITs, reduce distributable income.
• Currency risk: Foreign exchange moves can affect rand-denominated income.
• Sector concentration: Some sectors may face long downturns. Diversification spreads the risk.
• Liquidity risk: Public markets can be volatile. Size positions so you can hold through drawdowns.

Bringing It All Together

Dividends are the engine of long-term REIT returns, and they have proven resilient through multiple market cycles. With interest rates stabilising and inflation easing, listed property is set up to keep delivering steady cash flow — and potentially capital growth as valuations recover.

Why Reitway Global

Reitway Global focuses exclusively on global listed property, giving investors specialist insight and access to the sector.

• Specialist expertise: Research and portfolio construction are dedicated to global REITs — no distractions, no style drift.
• Purpose-built ETFs: Five distinct options let investors choose broad exposure, ESG, diversification tilts, active management, or income focus.
• Local access, global reach: All ETFs are JSE-listed and rand-denominated, giving seamless access to worldwide income streams.
• Investor education: Reitway’s Insights and tools help investors make informed decisions rather than buy blind.

This focus, combined with a commitment to transparency and education, makes Reitway a trusted partner for investors seeking both yield and growth potential.

Reitway Global – Your Partner in ETF Investment

Global property dividends are paying investors right now — and Reitway Global gives you a simple, efficient way to capture them.

Explore Reitway Global’s ETF range and start building a diversified income stream today, with a partner that understands global listed property better than anyone else in South Africa.