REITs can be categorised into many sub-sectors such as industrial, commercial, and retail The portfolios of diversified REITs contain a mixture of at least two property sub-sectors. One example is CapitaLand Integrated Commercial Trust (SGX: C38U), which owns a mix of retail, office, and integrated development properties. When COVID-19 first hit, there were six diversified REITs listed in the Singapore Exchange Limited (SGX: S68). Since then, the number has increased to nine, constituting 22.5% of listed REITs. The birth of new diversified REITs can happen due to mergers between two sector-specific REITs. One example is the merger of office-focused Frasers Commercial Trust and industrial-specific Frasers Logistics & Industrial Trust to form Frasers Logistics & Commercial Trust (SGX: BUOU).

Diversified REITs are larger 

Over the years, REITs have been diversifying their asset mix to buffer the adverse impact of economic shocks while simultaneously riding the tailwinds across a multitude of segments. This rationale can be further broken down into several reasons....