REITs SYMPOSIUM 2020
Asked 6d ago
I am thinking about investing 500 dollars every month on Singapore REIT using Syfe. My target is to grow my wealth for the next two or three years. I have some foreign stocks and currently using Stash Away. I just think it would be great to diversify from my current portfolio.
There is a REIT Symposium that is coming up this Friday. Perhaps you should sign up and listen in! It's free of charge and virtual.
My personal take:
Hospitality/Residential: will be challenged, but seems really value buys right now. It really comes down to the sponsor's financial fortress. There is also brand perception; e.g. Fragrance/ibis budget operated by Fragrance Group will never be as well-regarded as Parkroyal operated by UOL. Bigger, more luxurious hotels tend to have better profit margins because they could attract richer customers, who are less affected by pay cuts. Once travel is allowed again, these people will go to the more luxurious brands. The wild card here are the boutique, semi-luxurious hotels like Mercure.
Industrials: mixed; definitely data center REITs are flying high because their services have become staples for business operations, however, they are trading way above asset value. Traditional industrial REITs are a mixed bag; some are doing better than others, you need to look at what unique proposition each industrial REIT brings to the table.
Retail: personally, I still like this sector. We are still very much a mall-culture, and mall gives us a sense of community. It's up to the mall management to be more flexible with how they want to work with shopkeepers and retailers - maybe shifting to a revenue-sharing + lower fixed rent model. Here the creativity and drive of each mall's MCST is really important; go visit the malls, see how each mall is performing. Talk to the shoppers and shopkeepers. Have a feel of how each floor is doing. How many shops are vacant? Are the shopkeepers motivated when you come in? It is really subjective. I think most mall REITs are selling at value right now, and perhaps the e-commerce potential is not fully priced in yet. This sector is very exciting.