For the year to date until 22nd Jan, REITs have returned on average 2.6%.

On an annualized basis, returns would be close to 50%. However, that large number is but of course due to the short term positive return. Returns will likely be volatile over the next few months as the Fed signals their intention to return to a normalized interest rate level – impacting interest rate sensitive REITs.

Those with higher gearing such as IREIT Global, Mapletree Greater China Commercial Trust, Soilbuild REIT and Viva Industrial Trust may be at risk due to higher interest burdens.

The returns for the various sectors are as follows:

Office: 2.8%
Retail: 1.8%
Industrial: 2.5%
Hospitality: 4.2%
Healthcare: 0.9%
Data centre (only Keppel DC REIT): 3.5%
Others (only Cromwell European REIT): 5.4%

With the exception of “Others” which consist of only Cromwell European REIT, the hospitality sector performed well, driven by improving business sentiment around the world …