The REIT sector had to trudge on a rough road last year.
The combination of high inflation and surging interest rates dampened sentiment for the asset class and caused valuations to tumble.
Investors are also justifiably worried about a possible recession that may hit Singapore’s shores this year.
A recession will reduce consumer spending and cause businesses to hunker down to save costs.
These actions will hurt REITs as their real estate portfolios thrive on robust business activity.
The good news is that not all REITs are affected to the same extent.
Some REITs are better equipped to handle an economic slowdown as they have characteristics that make them resilient.
Here are three types of REITs that can coast safely through a recession.
Suburban retail REITs
Suburban retail REITs have a distinct advantage when a downturn hits.
Being located close to heartland areas, these malls should continue to enjoy healthy footfall and...