REITs have performed poorly this year as the combination of high inflation and surging interest rates dampens sentiment for the sector.
Many REITs have plumbed to their 52-week lows as investors bail out of the sector in search of greener pastures.
However, there could still be attractive bargains to be found for resilient REITs that own quality assets.
Income-seeking investors also get a bonus – many REITs are trading at attractive distribution yields as their share prices tumble.
Elite Commercial REIT (SGX: MXNU) recently hit a year-low of GBP 0.24 and is down 49% year-to-date.
Meanwhile, United Hampshire US REIT (SGX: ODBU) also hit its 52-week low of US$0.39 recently but is down just 6.7% year-to-date.
We size up both REITs to see which has the more attractive distribution yield and whether its payout is sustainable.
Portfolio composition
Elite Commercial REIT owns a portfolio of predominantly freehold commercial buildings in the UK.
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