Reits could offer investors shelter amid inflation storm
Fed's rate hikes seen dragging on S-Reits' prices in H1 2022 but commercial, industrial sectors show potential
Singapore
THE scourge of inflation is rattling equity markets with most pundits expecting rising prices to peak in the second quarter. Amid the headwinds, real estate investment trusts (Reits) could provide a safe harbour for investors, say analysts.
"Inflation is climbing, driven by both cyclical and structural factors, and will likely peak in Q2 before moderating in the second half. Inflation pressures from energy and food prices, and supply chain disruptions, will likely ease by the second half of 2022," said Maybank Investment Banking Group analysts Chua Hak Bin and Lee Ju Ye in a recent report.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
