REITs have been experiencing a recovery of sorts since last year.
Retail REITs that own local malls are now enjoying higher tenant sales and footfall compared to the lows.
Industrial and commercial REITs are also enjoying some respite after doling out tenant relief measures to prop up beleaguered tenants.
That said, share prices of REITs such as Frasers Centrepoint Trust (SGX: J69U), or FCT, and CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, have been languishing for 2021.
Despite the purported recovery, CICT’s unit price is still down around 3% year to date, while FCT’s unit price is around the same level it was at the start of 2021.
Last year’s top performer, Keppel DC REIT (SGX: AJBU), has seen its unit price decline by nearly 10% year to date.
Should investors have the confidence that conditions will improve further?
And can REITs see their share prices rising in tandem with these improvements?...