Data centre, industrial, healthcare Reits most resilient in recent sell-off

More market volatility still possible, but replication of global financial crisis unlikely: analysts

Published Wed, Apr 1, 2020 · 09:50 PM

Singapore

THE recent selldown in Singapore real estate investment trusts (S-Reits) has been toughest on hospitality Reits but has left the data centre, industrial and healthcare-related Reits relatively unscathed.

Analysts see some bargains emerging but add that risks remain high and valuations are still above historical lows.

For the first quarter of this year, the FTSE ST Reit index has returned -24 per cent. Keppel DC Reit is the only S-Reit to have generated positive returns. Its outperformance parallels what is happening in the US, where data centre Reits are also trading at a premium to their peers.

CGS-CIMB Securities analyst Lock Mun Yee said the da…