I thought its good to do a quick recap to see where we are currently when it comes to the REITs scene. Last year, there the main narrative was the rising interest rate making REITs less attractive as an investment to be in.
What we observe is that despite the rising rates, Singapore based REITs, particularly those with strong sponsors held up rather well.
There could be two reasons ( I say could because we are never very sure) one is the strength of our currency and that these REITs are known in the region among the institution to be good quality. These two reasons probably make these REITs with Singapore based assets defensive in hindsight.
Those that hold foreign assets, or denominated in foreign currency, had some wild volatility. For those holding on, such as myself, it doesn’t behave like the kind