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S-Reits offer sustainable income: Schroders

Singapore real estate investment trusts seen having a role to play in investors' portfolios over longer time horizons

Angela Tan

Angela Tan

Published Wed, Apr 12, 2017 · 09:50 PM

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Singapore

INVESTORS seeking a sustainable income source should consider Singapore real estate investment trusts (S-Reits) as part of their investment portfolio, Schroders suggested on Wednesday.

Schroders said Reits had been a popular way for investors to invest in property while at the same time receiving an income. However, they have lost favour amid concerns over rising US interest rates. This was because as bond yields rise, the yield difference between a "safer" bond and a more "risky" income stock narrows, making the latter less attractive.

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