Phillip SGX APAC Dividend Leaders REIT ETF

[Temperament]

The term "Dividend Leaders" is a misnomer considering this ETF is 100% REIT driven. Distributions are not dividends and in current low interest rate environment, it is simply not possible for a broad based index focused in AU, HK and SG to generate 5.19% "dividend yield".

Asset managers have deliberately conflated the two distinctive financial terms in their self-promotion. This is a potential major hazard down the road as I understand a lot of retired senior citizens are living on such "dividends" under the wrong impression that they are safe and sustainable.

Care to explain to me why distributions are not the same as dividends? 
Why do you say that these dividends are not safe & sustainable?

To answer your question, one would need to look into each and every REIT on their "capital structure" (gearing, type of loans etc). A dividend is defined as a distribution out of excess earned profits, rather than out of capital. So even though some of the leasehold type of Trusts disguise their "return of capital" as profits, it should still be considered dividends, based on the definition.

"Safe" is a really relative term. So unless we have a reference point for "safe", then there is no point to start a discussion here, since all of us have different notions for it.

I reckon a lot of retired senior citizens were once regular salary-receiving employees. This explains why they would continue to seek "regular dividends" from their investments, when it should be very clear to them, that along the way as they aged, they should have observed that the really rich people are the ones who focus capital gains over dividend payouts. For those retired senior citizens whom have held the big caps/blue chips (low dividend yield when they purchased it donkey years ago, but has a higher probability to keep growing with GDP), kudos to them. I do suspect that those who piled a large portion into REITs (and depend on its predictability/high yield) are not going to end up as per intention.

Thanks for your explanation. 
For those retirees who are dependent on a big Reit portfolio for their retirement, what would you suggest? Keep a  cash warchest by the bedside for right issues?

Of course.
Not that non-reit companies don't have right issues, we all know Reits have almost zero retained earnings, so be very prepared for right issues.
Otherwise expect to get diluted but most probably you can sell away your rights as Nil Paid Rights as a compensation.