Singapore Reits: Faltering but not falling
A look at the more vulnerable ones amid the ongoing pandemic, how they can tide over this turbulent period and how investors are impacted
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SINGAPORE real estate investment trusts (Reits) are a favourite among local investors. Perceived by some as an asset class on its own, Reits form a relatively sizeable position in the investment portfolio of a typical investor.
The Reit market in Singapore kicked off in 2002 with the successful listing of CapitaLand Mall Trust. In the same year, Ascendas Reit followed. By 2007, the equity price for S-Reits had gained 230 per cent (28.6 per cent per annum) according to the FSTREI Index. The following year, the 2008 Global Financial Crisis wiped out all of the gains since 2002. Today, we are seeing the Reits go through another volatile phase as Covid-19 disrupts the economy, businesses and our daily lives. Will Reits still remain a must-have for Singapore investors amid the ongoing coronavirus pandemic?
Reits are not equally vulnerable
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