S-Reits themselves in need of some lifelines

BEFORE the Covid-19 pandemic dealt a devastating blow to the Singapore economy, real estate investment trusts (Reits) were already suffering from a bad-boy image as far as their tenants were concerned.

Reits are characterised by their high income, strong yields and low risk, which some tenants see as coming at their expense in these trying times. But these very characteristics are also precisely what make Singapore-listed Reits (S-Reits) attractive investments - not just to local but also international investors, in particular global pension funds, making Singapore Exchange one of the world's best places to list a Reit.

Today, the exchange boasts of 45 Reits and business trusts, yielding an average of 8-9 per cent per annum for investors. This average is, of course, based on trailing payouts against the S-Reits' current beaten-down market price.