facebookConsidering the impact Covid-19 is expected/has had on the markets, why are the REITs in SGX still going up? - Seedly

Gary

28 Feb 2020

REITs

Considering the impact Covid-19 is expected/has had on the markets, why are the REITs in SGX still going up?

I notice that most of the REITs in SGX is going up. Why is this the case? I thought it'd be going down?

Discussion (22)

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Alex Chua

28 Feb 2020

Seedly student Ambassador 2020/21 at Seedly

Reits collects rental from tenants that are fixed due to their lease agreement. That is why it is viewed as a more stable asset

Sgx has a strong moat and is fundamentally strong, debt free. Thus. Sgx is a decent stock to invest.

What are the REITs in SGX that are still going up and suitable to be listed as warrants?

Dhruv Arora

25 Feb 2020

Founder & Chief Executive Officer at Syfe

REITs in general have a low correlation to stocks and bonds. They are also typically seen as defensive investments, so when market conditions seem to be worsening, REITs tend to remain resilient. Real estate is always in demand and tenants are bound by a contractual commitment with leases that tend to be longer than a few years. This assures the REIT a steady stream of revenue, and hence dividends (REITs have to pay 90% of their taxable income as dividends). That guarantee makes it attractive for investors to add REITs to their portfolio.

Furthermore, in times of market uncertainty, investors look for investment vehicles that offer regular dividends and relatively stable income - benefits that REITs offer in this current climate.​​​

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Jason Sing

24 Feb 2020

School Of Hard Knocks And Life at School Of Hard Knocks And Life

Market sentiments are of the view that US Fed would likely cut interest rates in view of the world's weak economic growth as a result of the Covid - 19 virus. That is why prices of REITS in sgx are still going up.

Too many reasons.

Maybe market already priced in the effects.

Maybe, when the price went slightl...

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