Asia-Pacific Reits offer sweet spot for investors

An office building in Tokyo. Vacancy rates of office space in the Japanese capital are at multi-year lows, according to the writer. As a result of the strong market demand, landlords are able to command higher rents, driving up returns for Reits, whi
An office building in Tokyo. Vacancy rates of office space in the Japanese capital are at multi-year lows, according to the writer. As a result of the strong market demand, landlords are able to command higher rents, driving up returns for Reits, which are trading on an attractive yield spread against Japanese interest rates, she says.PHOTO: REUTERS

UOB highlights stable income generated by this asset class, especially in times of volatility

The US Federal Reserve recently cut its interest rate for the first time in over a decade. This was to keep the economy expanding against the backdrop of weak global growth and rising trade protectionism.

With central banks in other countries expected to follow suit in cutting rates, the shift in monetary policies may lead to greater market volatility. In view of this, it is timely for investors to review the effectiveness of their investment portfolios in generating returns.

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A version of this article appeared in the print edition of The Sunday Times on August 18, 2019, with the headline 'Asia-Pacific Reits offer sweet spot for investors'. Print Edition | Subscribe