facebookHi, I was wondering if it's still a good idea to invest in REITs with Syfe during this period, where many developers are experiencing financial deficits? - Seedly

Anonymous

24 Aug 2020

Robo-Advisors

Hi, I was wondering if it's still a good idea to invest in REITs with Syfe during this period, where many developers are experiencing financial deficits?

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Eliezer

24 Aug 2020

Content & Community Lead at Syfe

From a mid to long term perspective, Singapore REITs still offer attractive investment opportunities. Firstly, the value of REITs is well-anchored by physical real estate, which in land scarce Singapore, trends upwards over the long term.

Secondly, REIT rental income tends to be stable, due to the lock-in nature of leases. For instance, mall occupancies of retail REITs stayed above 98% in the first half of this year, while rental reversion was either flat or better.

Lastly, REITs offer long-term capital appreciation, as well as the potential for higher total returns.

Looking at the latest financial numbers from blue-chip REITs like Ascendas REIT, CapitaLand Mall Trust, Mapletree Industrial Trust etc, while performance has been affected to some extent by the pandemic, the REITs are nonetheless focused on future growth. Encouraging metrics like traffic recovery in malls already recovering to 50% - 70% of last year's levels by mid-July also point to a better outlook in the months to come.

If you believe in these good fundamentals, Syfe's REIT+ portfolio offers easy and low-cost access to Singapore's blue-chip REITs. You can view the full composition here: https://www.syfe.com/reit-plus

If you belief they will rebound post covid and has good fundamentals, then you should go for it. If it will remain bad then avoid it, revaluate it later and then make another judgement then.

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