Investors earn money with Roots through two primary avenues: appreciation in unit value and quarterly distributions.
Changes in Unit (Share) Price:
Roots updates its unit price every quarter, reflecting the performance of the REIT. This price can increase as the underlying properties appreciate in value. If the unit price increases, the value of your investment grows, meaning your units are worth more than when you initially purchased them.
Quarterly Distributions:
Roots distributes profits to its investors every quarter. These distributions come from the income generated by the properties within the Roots portfolio, such as rental income.
Additionally, you have the option to reinvest these distributions back into the fund, which is used to purchase more units and increase your ownership stake over time.