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Anonymous

04 Jun 2019

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Are REITs subjected to market adjustments?

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Hi there! Yes, definitely! REITs, like all quoted equity instruments, are subjected to market adjustments and fluctuations. The individual type of REITs may be subjected to their own property cycles. For instance, retail REITs like Capitaland Mall Trust may face a downturn if their portfolio of malls are facing vacancy issues. First REIT, with its portfolio in Indonesia healthcare institutions, was recently subjected to a sell down due to a weakening currency (rupiah) and issues with their main sponsor. A correlation between the future decrease in its distributions and share price is often noted.

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