Singapore is one of Asia’s largest REIT and property trust markets and S-REITs have become an important segment of the Singapore stock market. But of the 43 S-REITs listed on the Singapore stock exchange, only 5 made it into the Straits Times Index. What gives? In this article, I’ll share why not all REITs are built the same, and hopefully give you a framework (aka “virtuous vs vicious patterns“) to identify the best REITs for your portfolio. But first: Definition of a ‘good’ REIT investment We regard some REITs as top tier investments. They often have the following characteristics:

• valued at a premium, with higher price-to-book ratios and lower dividend yields when compared to their lesser competitors,
• yield higher long-term annualised returns,
• provide shareholders with stable dividends and increased DPU and NAV annually,
• have top quality assets,
• are backed by well-capitalised sponsors and sound management.

How to analyse REITs There is no lack of information on the internet understanding and analysing REITs....