Real Estate Investment Trusts (REITs) are considered by many to be a safe-haven asset class due to their relatively stable rental income and debt-to-asset ceiling of 45%.
However, it seems that REITs are still susceptible to steep drawdowns just as much as other stocks.
The REIT market in Singapore has been hammered as badly as the Straits Times Index, if not worse.
The table below shows the price changes of some of the REITs in Singapore since 9 March 2020.
Note: even REITs backed by traditionally strong sponsors such as Mapletree Investments Pte Ltd and CapitaLand Ltd have not been spared.
(9 Mar 2020)
(17 Mar 2020)
|Mapletree North Asia Commercial Trust||S$1.06||S$0.845||-20.3%|
|Mapletree Commercial Trust||S$2.21||S$1.77||-19.9%|
|Frasers Logistics and Industrial Trust||S$1.20||S$0.87||-27.5%|
|Parkway Life REIT||S$3.46||S$0.285||-17.6%|
|Keppel DC REIT||S$2.45||S$1.83||-25.3%|