Singapore has evolved in the past 20 years from being a predominantly local REIT market to a global REIT listing hub. In fact, Singapore is the only international REIT market in Asia with 80% of SREITs having some or all their properties outside Singapore, so you may already be an investor in REITs with overseas assets.
Specifically on SGX-listed US REITs, there are many analysts calling a buy on US REITs as they believe that macroeconomic conditions in the US will support the growth of the US real estate sector in the long term. Before the COVID-19 pandemic which has since affected all major markets, the US economy had stable growth, with unemployment levels hovering at multi-year lows. Disposable income levels were also strong.
US Federal Reserve has also committed to keeping its economy going with record-low interest rates which would be help to US REITs.
Across the three US Office REITs, we have all invested in properties with very long leases (it is the norm in the US real estate market for leases to be 5, 10 or 15 years vs 3 to 5 years in Singapore) - which help mitigate any near term downcycles, which provide clear visibility for dividends to investors. US offices are mostly freehold, with an annual rental escalation step up of approx. 2% per annum and no break clause options. These are the key distinctive features of the US REITs which you will not find in the SREITs.
Singapore has evolved in the past 20 years from being a predominantly local REIT market to a global REIT listing hub. In fact, Singapore is the only international REIT market in Asia with 80% of SREITs having some or all their properties outside Singapore, so you may already be an investor in REITs with overseas assets.
Specifically on SGX-listed US REITs, there are many analysts calling a buy on US REITs as they believe that macroeconomic conditions in the US will support the growth of the US real estate sector in the long term. Before the COVID-19 pandemic which has since affected all major markets, the US economy had stable growth, with unemployment levels hovering at multi-year lows. Disposable income levels were also strong.
US Federal Reserve has also committed to keeping its economy going with record-low interest rates which would be help to US REITs.
Across the three US Office REITs, we have all invested in properties with very long leases (it is the norm in the US real estate market for leases to be 5, 10 or 15 years vs 3 to 5 years in Singapore) - which help mitigate any near term downcycles, which provide clear visibility for dividends to investors. US offices are mostly freehold, with an annual rental escalation step up of approx. 2% per annum and no break clause options. These are the key distinctive features of the US REITs which you will not find in the SREITs.