DBS has a pretty good report out which shows some of the “stress-test” they put the REITs listed in Singapore through.
For those serious in investing in REITs, this is a good blueprint how you can assess the defensiveness of REITs in times of stress.
This kind of assessment is very quantitative and should not be the only way you assess the REIT’s defensiveness. You have to layer the qualitative aspect as well.
Let me share some of the main takeaways.
The Metrics that DBS uses to Measure Whether Each Singapore REITs Will Survive BetterFirstly, we have to be clear what they mean when they measure the survivability of the REITs.
I do not get a clear statement from the report but after reviewing the report, a REIT survives better by coming through this testy period in a much better condition than before they enter it.
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