US office Singapore REITs are trading at jaw-dropping dividend yields. I mean, it’s one thing to be attracted to a 7-8% dividend yield across Singapore REITs.
But man, Prime US REIT today trades at 44% yield, while Keppel Pacific Oak US REIT trades at 24% yield.
Are their dividend yields worth the risk?
I was also thinking if it’s worth adding to my Diligence Stock Watchlist.
Let’s find out.
What happened so far?
The thing is, COVID-19 has forced many people wanting to work from home in the US. This is especially so with bigger cities like New York, Los Angeles and San Francisco where it’s harder to travel to work because of frequent, heavy traffic. As a result, US office — or US commercial real estate — vacancies have soared to about 18% of total office spaces.
Source: Moody’s
This resulted in more and more companies reducing their physical leases, which have pressured rental rates....