Effect of compounding and the Dividend Reinvestment Plan (DRP) offered by S'pore REITs

In the course of my interaction with a few friends, I found out that not many are aware of the effect of compounding and that you can apply that when you invest in REITs that offer Dividend Reinvestment Plan (DRP).

Unitholders can enjoy the following benefits from the DRP:
- Can elect to receive Units in lieu of part or all of the cash amount of distribution
- Fully-paid new Units are issued at a discount to volume weighted average price
- No brokerage costs payable by participating Unitholders
- No stamp duty payable by participating Unitholders
- Units issued will be entitled to future distributions declared

You can go to this link that has an useful illustration (http://www.dividend.com/my-money/the-pros-and-cons-of-compound-interest)

So. take advantage of DRP and use compounding to your advantage.