REITs
are safer than houses?!
The 4 key points they talked about are summarized below:
- Earnings and balance sheets resilient; A low interest rate environment and a firming SGD should continue to support yield compression
- REITs delivering steady and dependable 13% DPU growth in 2Q
- Sector gearing remains comfortable, at 31%, providing flexibility for acquisitions.
- Valuations returning to long-term averages; risk perception to pre-crisis levels
My Two Cents
Although REITs are still showing that they can deliver good returns to the investors; the distribution yield will become lesser if the price of the REITs go up.
Thus, I believe when you are choosing your REITs, you will still do better in selecting REITs with constant progression in yield and has room for growth.
Going forward, capital appreciation of ......
