As a Real Estate Investment Trust (REIT) investor, I been hearing a lot of less desirable comments recently. No doubt they have been linked more to that there are more vacancies in shopping malls around Orchard. Middleground did a piece on whether REITs will kill or save Singapore’s shopping malls. The biggest hearsay is that REITs create an artificial environment where the fundamentals are non-existent. They are a bubble waiting to burst. I find this way of thinking really absurd.

What does it mean by fundamentals to be non-existent?

When we describe fundamentals to be non-existent, it means that the prices of the financial assets are artificially propped up. Whatever, that the managers, majority shareholders, and sponsors do to affect the REIT and its underlying properties will not result in positive and negative outcome. It also means that the investment properties held by the REITs are not affected by the ......