I have been staying at market’s sideline to sniff out good reits to add to my portfolio, as part of my portfolio construction process. This reit segment aims to provide sustainable, consistent dividend to to my coffers. Added together with my monthly investment funds, this will form a substantial amount to be used for purchasing cheap and good investments during down times.
Looking at the reit landscape, I excluded office and industrial reit from my list as the rentals are volatile, and subjected to the economic cycle. I did not even consider hospitality reit as the rental is even more choppy, affected by tourist arrival, the macro economic climate and the seasonal whipsaw in hotel rates.
I was contemplating between healthcare reit and retail reit. I suspect that retail reit may be more defensive in nature due to locals’ ...
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