Currently, there are support measures in place to protect the SGX-listed REITs, such as dividend deferments, an increase in the leverage ceiling, property tax waivers, and the ability to defer rents until cash flows can cover costs. In recent weeks, many research analysts have reported that the worst may be over for REITs, and that REITs are still an attractive investment in the current low-rate and modest growth environment.
Personally, I will wait for their 3Q and even 4Q financial results to see their numbers without all the government support. I still wonder how some of the REITs are able to return to close to pre-COVID prices when we are still in phase 2. Some of them are trading as if COVID will have zero impact on their business. That is anyone’s guess. If the retail reits are not paying distributions this year, there is no rush in my view to get in as I am a long-term investor, seeking dividends.
If you are a long-term investor, then timing wise, you need to derive your own comfort level, and enter when it’s close to your internal ‘valuation’.
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