 Good day, fellow investors. Over the past weeks, as I have announced a few weeks ago, I was really looking deep into REITs, healthcare REITs, US REITs, a little bit of global REITs. And in this video, I want to give you my conclusion on investing in REITs. To be short and to let you know what you can expect in the video, I think REITs, there are many good investments. There are many good investments that have nice dividend yields of 5% to 7%, 8% low risk offer growth that adds between 2% and 5% to that dividend yield. So especially if you have it in a non-taxable account, then you can really enjoy the compounding of that dividend without, let's say, risk. Because what you focus is the dividend plus the growth and you can get to returns of 9%, 10%, 11%, 12% from your investments, which is exactly what has been the return over the long term from REITs. Interest rates going up and down are a risk, but there are a lot of REITs that have protection on that because they have inflation indexed tenant contracts. So that's very interesting. And in this video, I want to give you an overview of this REIT investment. And tomorrow I'll give you one REIT, not US, because those are relatively fairly priced. And there is a lot of money chasing from private money, from public REIT money, chasing those real estate deals. So if you look around the world, you can find higher yields, perhaps even lower risk because it's US healthcare, Medicare and all the commitments that there are, all the debt that there is. Might turn into risk over the long term plus US healthcare is the most expensive in the world. So I think that from a political perspective, those costs will have to go down somewhere. So it's pretty risky. Better to look around the world and I'll discuss a REIT like that tomorrow. Let me give you an overview of what I have found till now. So if we look at REITs, this is my first overview of the healthcare REITs. The dividend is there for the low risk REITs, usually around 5% in the United States, depending on the payout, dividend to free funds of operations payout. Then you have the growth, if all things go well and later I implement the risk in this and then you see that the growth isn't that stellar. But still, the total expected returns for some REITs are really between 8% and 10%, 11% on the good ones that have tailwinds, sector tailwinds, etc. However, in healthcare, there is a lot of competition. So it is also risky, especially if we see a slowdown. In case of a slowdown, you have to reinvest the dividends and build more of the good REITs, accumulate more of the good REITs, and over the long term, you will still get to great return. So if you can do that, if you can stomach the downturns, then I would say REITs are a good investment. However, I've been looking also at some Canadian REITs and those have even higher yields with similar growth stories. So if you're from Canada, you might want to look into Canadian REITs and not really US REITs. There is also risk, Canadian real estate is also at risk, currency risks, but you have to invest in what you know and you have a better opportunity to invest in the local market and understand the local market. In Europe, the situation is similar to Canada. Some REITs actually trade in Canada but have assets only in Europe, so that's very interesting. But again, the REITs, the dividends are there, the growth is there, the promises are there. Of course, there are risks attached to investing in REITs. If we look at those yields, the worst thing that can happen from a risk perspective is a dividend cut. A dividend cut is never priced in into the price of REIT. Most investors simply focus on that dividend, being institutional investors, whomever they focus on the dividend. Okay, this is what I invest in. If the dividend goes down, the stock price crashes because then people start expecting dividend cuts. Economic adverse time might lead to dividend cuts, higher interest rates might lead to dividend cuts because the spread is then lower. If tenants get into trouble, if the expectations are the tenants will get into trouble, we might see trouble. And this is exactly what happened to Clapier during the last financial crisis. If we check Clapier, the European retail REITs, it went from 50 to 16 over just a few years during the Great Recession. Lower interest rates and money printing saved the EU economy and therefore it recovered, but this shows how risky REITs are. It went from above 40, 50, down to 16 and then up again and now it's going down again. Another risk is leverage. It's always tricky. You simply depend on the willingness of others to lend money to you. And if your income streams slow down, it's a spiral of bad news that can end terribly. If we look at Canadian real estate debt levels, we have debt to EBITDA above 5 to 12, 14. These are really crazy debt levels, double what are the normal debt levels in the US. So you have to really be careful to analyze the debt in relation to what's going on, to perhaps the growth, to the risk of the real estates, etc. You also depend on tenants. If they can't pay, these debt to EBITDA ratios really concern rating agencies. Then you have to borrow at higher interest rates, mortgage loans, lose some assets. And that's not the place you want to be when investing in REITs. Further, I have read some articles online and those have discussed how real estate prices might be at a high plateau. So interest rates cannot really go much, much lower. If we see some increases in interest rates that changes year by year depending on what's going on with the economy, what are the expectations? If there is a recession, there has been so much building over the last years that at some point there will be an oversupply of real estate. For example, in Amsterdam, I was looking a few years ago, there was only one building site in the business part of Amsterdam. Now there are 15 building sites. And if we look at city offices, the vacancy in Amsterdam is now at 10%. With all those new buildings, it will increase, therefore it's difficult to rent out. It's a lot of competition, lower rent prices, especially if there is a recession, which will lead to a lot of risk. And a lot of REITs will have the same performance as Clapier over the last 10 years or over the last crisis. It's simply a factor of supply and demand. And you have to carefully understand the supply and demand when investing in your specified REIT. I'll give you tomorrow in a video a REIT that I will be watching over the next decade. And when I see that the supply demand or something is wrongly priced, it gives me a high return on investment for low risk, only at that point I will invest in that REIT. That might happen once in 10 years, once in 5 years, but by watching, by understanding the nature of the business, I can find great investments and wait for them to come to me. No rush, no hurry. So to conclude, most REITs are fairly priced. There has been a window of opportunity in December 2018. I didn't take advantage, as I didn't have the research to know enough about them. But if that repeats itself somewhere in the future, I might take a bite at REITs. And a very important note, check how you will be taxed on REIT dividends. Some of us in Europe get to 40% on those dividends, so that's something I have to calculate when it comes to investing in REITs. If you have a non-taxable Canadian US account where many REITs have qualified dividends, and you don't pay any taxes on those dividends, then it's really a big difference when it comes to long-term compounding, not to see 15%, 25%, or 40% of your dividend be taken away. You can buy one share, test it, see, OK, this REIT, that's the income level of tax, or call the investment relationship of the specific REIT, or call a tax advisor, read a little bit, ask your broker to find out what will your taxation be. Extremely important when it comes to REITs. Thank you for watching, looking forward to the comments and I'll see you in the next video.