- If a second wave begins to infect countries that are re-opening their economy, the outlook for real estate will get worse.
- Beyond the safest data-centre counters, it is realistic to expect dividends to be retained by the REIT managers and rental waivers given to the most vulnerable tenants. We should not be overly pessimistic because there is still a decent chance that the dividends will be paid before 2020 is up.
Of late, there have been articles published on local blogs that talk about the demise of REITs as a viable strategy. To review whether there is any truth in this statement, I used the Python programs I wrote to explore the veracity of these statements. As it turns out, there is no basis in being bearish against REITs in Singapore.
Before we begin this exploration exercise, let’s first accept there are risks in REIT investing such as:
