With the plethora of REIT choices on the local stock market, you’d be forgiven for feeling confused over which one to select.
If we layer on a once-in-a-century pandemic, this decision becomes even tougher.
Retail REITs have been badly hit by social distancing rules and movement control restrictions, while hospitality REITs are suffering from a dearth of visitors as governments impose lockdowns and border closures.
This crisis has, however, demonstrated the relative resilience of three REIT sub-types.
These include industrial REITs, commercial REITs and healthcare REITs.
As their tenants have been less affected by the pandemic’s adverse impact, these REITs have managed to hold their own during this tough period.
Zooming into the industrial REITs sub-sector, we take a look at two REITs that are both large and have strong sponsors.
They are Mapletree Industrial Trust (SGX: ME8U), or MIT; and Ascendas REIT (SGX: A17U), or A-REIT.
Both REITs have weathered this storm admirably thus far. As investors, which should you choose as the better investment?...