Is this a good time to look at Hospitality Reits? Has the full impact of the covid-19 reflected in the books?

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The following is a response from the organisers of REITs Symposium 2020:

Unlike Industrial/Healthcare/Data Center REITs which have been generally more resilient through the pandemic, Retail REITs and Hospitality REITs have declined as much as 50-60% at the start of 2020.

In recent months, S-REITs averaged +1.3% total returns from 31 Jul 2020 to 25 Sep 2020, buoyed by strong returns in Diversified REITs (+8.0%). Declines in Retail REITs and Hospitality REITs have trimmed slightly; the 2 subsegments averaged total returns of -0.7%, and +0.2% respectively.

Below lists some of the outperformers during the period:

• Hospitality REITs: Far East HT (+14.6%), CDL HT (+8.9%), Ascott Residence Trust (+2.3%)

Potential drivers of Hospitality REITs:

• Demand from families and couples for staycations in Singapore

• Upcoming green lanes for business/official trips. Transport Minister Ong Ye Kung suggested the arrangement as a way to help lift the passenger nos. at Changi to about 40% of pre-COVID levels.