{"id":2033,"date":"2021-07-02T17:42:00","date_gmt":"2021-07-02T09:42:00","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=2033"},"modified":"2024-04-02T14:02:05","modified_gmt":"2024-04-02T06:02:05","slug":"are-you-missing-out-on-singapores-reits-opportunity","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/are-you-missing-out-on-singapores-reits-opportunity\/","title":{"rendered":"Are You Missing Out On Singapore\u2019s REITs Opportunity?"},"content":{"rendered":"\n
\"\"\/<\/figure>\n\n\n\n

Singapore real estate investment trusts (S-REITs) have made a remarkable recovery, rebounding almost 45% to date from its record low on March 23, 2020. <\/p>\n\n\n\n

And despite a more challenging operating environment this year, the long-term outlook for S-REITs remains positive. <\/p>\n\n\n\n

The new government measures <\/a>announced will give them greater flexibility to manage their cash flows and raise funds to weather the economic fall-out from COVID-19.<\/p>\n\n\n\n

A resilient asset class <\/strong><\/h2>\n\n\n\n

S-REITs are generally defensive, income-generating investments that offer relatively high yields and consistent dividends. This makes them a welcome addition to any portfolio, regardless of economic conditions.<\/p>\n\n\n\n

Syfe\u2019s REIT+ portfolio<\/a>, which invests your funds in the top 20 S-REITs, has an average annual return of 8.4% over the past 5 years. In 2019 the portfolio returned 27.1% on the back of stellar real estate performance.<\/p>\n\n\n\n

Firstly, the value of REITs is well-anchored by physical real estate, which in land-scarce Singapore, trends upwards over the long term. <\/p>\n\n\n\n

Secondly, REIT rental income tends to be stable, due to the lock-in nature of leases. This allows REITs to pay out dividends on a sustained basis, albeit at reduced levels in certain situations. <\/p>\n\n\n\n

Finally, REITs offer long-term capital appreciation, as well as the potential for higher total returns. <\/p>\n\n\n\n

The combination of these attributes has long made REITs an attractive investment option for many Singaporean investors. And despite the challenges posed by the COVID-19 pandemic, these fundamental qualities remain.<\/p>\n\n\n\n

A once-in-a-decade buying opportunity <\/strong><\/h2>\n\n\n\n

Amid a lower-for-longer interest rate environment<\/a>, S-REITs\u2019 attractive yields of around 5% on average certainly put them ahead of other income-generating assets. <\/p>\n\n\n\n

For investors seeking income, REIT portfolios, such as Syfe REIT+<\/a>, offer better yields than the near-zero options in the bond market and bank savings accounts. <\/p>\n\n\n\n

While S-REIT prices have rebounded, they are still significantly lower compared to the start of the year. This presents an opportunity to accumulate quality S-REITs at attractive prices.<\/p>\n\n\n\n

Syfe REIT+: In collaboration with SGX<\/strong><\/h2>\n\n\n\n

Syfe\u2019s REIT+ portfolio<\/a> is a broadly diversified S-REIT portfolio. It\u2019s the first to collaborate with Singapore Exchange (SGX) to offer the iEdge S-REIT Leaders Index<\/a> to retail investors. <\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

The top five constituents of the portfolio are industrial, commercial and retail REITs the likes of Ascendas REIT<\/a>, Capitaland Mall Trust<\/a> and Mapletree Logistics Trust.<\/a> <\/p>\n\n\n\n

Syfe REIT+ gives investors access to the largest and most tradeable S-REITs in the market. Learn more about the portfolio here.<\/a> <\/p>\n\n\n\n

Syfe fully manages your portfolio with free dividend reinvestment for fees as low as 0.35% per annum. There are no brokerage fees, no minimum investment and no lock-in period. Syfe is licensed and regulated by the Monetary Authority of Singapore (License – CMS100837)<\/a>.<\/p>\n\n\n\n

Getting started is easy<\/h2>\n\n\n\n