You know, every now and then, I like to take a step back and assess the REIT market from a fresh perspective. And what better way than to check which REITs are struggling the most? This is especially relevant in today’s stock market. Why? We are all painfully aware that REITs haven’t been doing well. But since the start of the year, US stocks as well, which could have a negative feedback loop to the Singapore stock market, including REITs.
So, I pulled up a list of REITs trading closest to their 52-week lows. I expected to see the usual suspects, maybe some smaller, more speculative REITs, or at most, the embattled Mapletree Pan Asia Commercial Trust or MPACT, which has been facing all sorts of issues. But when I saw the actual names on the list… I nearly spilled my morning kopi siew dai.
These weren’t just any REITs. Some of them were blue-chip REITs, backed by some of the biggest sponsors in Singapore! I know, I know, nowadays, having a strong sponsor doesn’t guarantee good performance anymore. Just look at MPACT.
But what shocked me the most? One of these struggling REITs is even on my list of Core REITs that I introduced in my recent video! That’s right, something that I considered a solid long-term holding has now fallen into troubled territory, that is near to their 52-week lows.
So today, we’re going to talk about 3 troubled REITs that have been hit hard. Singapore REITs in general have continued to underperform, but these three REITs in particular have fallen to hard times. We’ll uncover what’s ailing them, whether the market has overreacted to the bad news related to these REITs specifically, and most importantly, whether there’s still hope for them after all.
Before we dive in, let me remind you that this video is for informational purposes only and not financial advice. Always do your own research and consult a licensed financial adviser before making any investment decisions. I own some of the REITs discussed, but what works for me might not work for you.
Alright, let’s get started!
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Price-to-Net Asset Value charts are from www.REIT-tirement.com...