Singapore real estate investment trusts (S-REITs) have faced a tumultuous month in the wake of the COVID-19 pandemic. There was a sharp sell-off among S-Reits in mid-March as fears surrounding the virus intensified. But markets stabilised in the preceding weeks and S-REITs rallied. At this time of writing, the SGX iEdge S-REIT 20 Index – the most liquid representation of the S-REIT market in Singapore – has rebounded nearly 20% from its record low on March 23.

Despite the economic uncertainties brought about by the COVID-19 outbreak, the long-term outlook for S-REITs remains positive, buoyed by new measures that will give them greater flexibility to manage their cash flows and raise funds amid a challenging operating environment.

S-REITs are generally defensive, income-generating investments that offer relatively high yields and consistent dividends. This makes them a welcome addition to any portfolio, regardless of economic conditions.