facebookWhat do you think of the viability and survivability of REITs in the long run, especially with COVID-19 setting up a new normal in especially commercial and retail REITs? - Seedly
Seedly logo
Seedly logo
 

Advertisement

Anonymous

Posted on 13 May 2020

What do you think of the viability and survivability of REITs in the long run, especially with COVID-19 setting up a new normal in especially commercial and retail REITs?

0 comments

2 answers

Discussion (2)

Frankie Rappaport

Frankie Rappaport

Level 16. Sage

Posted on 18 May 2020

Surely they will stay with us.

but You'd better just average, by periodically investing into Lion-Phillip S-REIT-ETF,

the one of 3 Singapore ETFs focused on factual Singapore allocation of property.

something:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

0

Post

Hi anon, that's a great question! Despite the economic uncertainties brought about by COVID-19, our long-term outlook for S-REITs remains positive.

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. Thirdly, the recent MAS measures give REITs greater flexibility to manage their cash flows and raise funds amid a challenging operating environment.

For investors assessing the suitability of REITs, consider that the market has largely priced in the COVID-19 impact on REITs. Investors now have the opportunity to stock up on quality REITs, previously trading at all-time highs, at discounted prices. 

If you are concerned about sector risks, the important thing would be to diversify your REIT portfolio. One way is to invest in the Syfe REIT+ portfolio which tracks SGX's iEdge S-REIT 20 index to replicate its performance and achieve broad diversification. Each REIT constituent within the index is capped at a weightage of 10% to avoid sector risk.

REITs remain a fundamentally resilient asset class over the long term. This makes them a welcome addition to any portfolio, regardless of economic conditions. If you have further queries, do reach out to our advisors!

0

Post

Write your thoughts