12 things to consider when investing in Reits

Real estate investment trusts are the "star performers" this year, far surpassing the performance of the benchmark Straits Times Index, says Ms Carmen Lee, head of investment research at OCBC Bank. Based on the FTSE ST Reit Index, the year-to-date ga
Real estate investment trusts are the "star performers" this year, far surpassing the performance of the benchmark Straits Times Index, says Ms Carmen Lee, head of investment research at OCBC Bank. Based on the FTSE ST Reit Index, the year-to-date gain is 18.9 per cent, much higher than the 2.5 per cent gain for the STI.ST PHOTO: LIM YAOHUI

They are less volatile than wider stock market, suitable for retirees who want regular dividends

Volatility continues to unsettle markets, but real estate investment trusts (Reits) remain a sweet spot with relatively high yields and stable dividends.

Indeed, institutional investors have been turning away from private equity real estate and infrastructure investment in favour of liquid funds that put their money to work faster, notes Mr Geoff Howie, market strategist at the Singapore Exchange (SGX).

Please or to continue reading the full article. Learn more about ST PREMIUM.

Enjoy unlimited access to ST's best work

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content
A version of this article appeared in the print edition of The Sunday Times on September 08, 2019, with the headline '12 things to consider when investing in Reits'. Print Edition | Subscribe