The REIT sector did not have the best of years in 2020.
However, certain REITs managed to emerge relatively unscathed.
These REITs typically have a strong sponsor, along with tenants that are resilient and long leases that helped to buffer against income volatility.
There were even a handful of REITs, such as Ascendas REIT (SGX: A17U), that conducted accretive acquisitions in 2020 to boost their distribution per unit (DPU).
Income-seeking investors will take comfort in knowing that REITs can continue to do well this year, even as the world recovers from the debilitating pandemic.
Many of the stronger REITs are on the lookout for suitable acquisitions to further boost their portfolios and increase DPU for unitholders.
Here are three reasons why I believe these REITs can continue to do well this year.
Low interest rates
Because of the pandemic, countries around the world are lowering interest rates to stimulate their battered economies....