Markets have been a little rocky lately, and we know it can feel uneasy when your portfolio moves up and down. But volatility is a normal part of investing, especially in real estate. Syfe REIT+ is designed for the long term, offering access to quality S-REITs and aiming for stable income over time. So, while the ride may feel like a roller coaster at times, staying invested could be your best move.
REIT+ Performance Snapshot
After dipping to a low in April, REIT+ portfolios have rebounded by around 6–7% as of end-May. Year-to-date performance continues to outperform benchmarks. This is aided by a recovery in select REITs and stabilising interest rate expectations.
The past month was choppy, with some S-REITs pulling back in May, but the overall trend from April’s lows remains encouraging. Despite the rough market over the past several years, the REIT+ portfolio has consistently outperformed benchmarks like the iEdge S-REIT Leaders Index.
What’s Driving the Market
REITs have been caught in the crosswinds of interest rate uncertainty, global growth concerns due to tariff uncertainty, and selective earnings pressure.
But fundamentals are still intact: Singapore’s REITs maintain healthy occupancy rates and strong balance sheets. With major central banks likely done with rate hikes and even eyeing cuts later this year, the pressure from rising yields may start to ease. In short, the current environment reflects short-term jitters — not a breakdown in long-term value.
Should You Sell, Hold or Buy More?
We believe this is a time to stay invested, or even top up. Here’s why:
- Falling Rates, Lower Borrowing Costs
Interest rates in Singapore are trending down, and we’re starting to see signs of this feeding through to REITs. Q1 earnings showed early signs of declining borrowing costs, easing one of the biggest headwinds for the sector. - Attractive Yields and Valuations
S-REITs are trading at around 0.8x book value, with dividend yields near 6%. That’s significantly higher than alternatives like deposits, T-bills or Singapore Savings Bonds—making REITs compelling for income seekers. - Stronger Market Support and Tailwinds
The outlook for REITs is getting a boost. SGX ramps up investor education and transparency efforts, a sign of confidence in the sector’s growth potential
With better fundamentals and macro tailwinds, REITs may be poised for a stronger second half. Holding on or buying more could be a smart move.
REIT+ or REIT ETFs?
Compared to traditional REIT ETFs, which require a CDP and brokerage account, Syfe REIT+ does not require any additional setup, making it easier to get started. Dividends are automatically reinvested and the portfolio is rebalanced biannually, saving investors the hassle of manual management.
Syfe REIT+ charges a transparent, all-inclusive management fee of 0.25% to 0.65%, while REIT ETFs involve commission and brokerage fees per trade. It’s also less time-intensive, with automated risk management, whereas REIT ETFs require a more hands-on, self-directed approach.
For convenience, automation, and consistent income, check out Syfe REIT+ today.
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