I like to share my observation with you about Singapore REITs. I’ve also shared this at the REITs Symposium two weekends ago (were you there too?). I agree, Singapore REITs are facing problems. Why?

• Singapore REIT shares were down 8% this year.
• High gearing and higher interest rates have raised REITs’ interest costs. These put pressure on what income investors like to look at – distributions per unit (DPU).
• Also, Singapore REITs need to refinance expiring debt and renew interest rate swaps soon.
• Poor share performances were further dragged by Singapore REITs that invest in overseas assets.

The thing is, I would have sold all my Singapore REIT shares today. But I didn’t. Because here’s what I’ve really observed about Singapore REITs, that not many investors are really talking about: Singapore REITs 1Q2024 results continued to stay healthy I’ve said before, Singapore REITs’ positive momentum will kickstart once our economy re-opens from the pandemic – in spite of higher interest rates....