NOT ALL DOOM AND GLOOM?
That said, investors should bear in mind that not all S-REITs are alike. There is a huge divergence in terms of the strength of their balance sheets, quality of assets and earnings, management capability and dividend payout capacity.
The Temasek-backed S-REITs tend to have much stronger balance sheets and diversified portfolios that have resilience against unanticipated market events.
Geopolitical developments and the war in the Middle East might also throw up opportunities for Singapore-listed players. Many could benefit from potential business relocations and fund flows into Singapore, as the situation in the rest of the world and especially erstwhile safe hubs in the Middle East, look increasingly unpredictable.
S-REITs have never shown an inclination to be a high beta play that rallies in tandem with the broader market. But they still offer good yield and stable growth for investors with a strong income focus, given how most are familiar names exposed to relatively safer geographies in Singapore and across the Asia-Pacific region.
As the saying goes, the past is no guarantee of the future but future income streams can be built with patience and foresight. Despite the turbulence of the times, the right S-REIT may still be able to deliver stable long-term yield for the patient investor.
Ven Sreenivasan is a former editor and journalist who has covered financial markets, economic and corporate news and aviation for more than 30 years.
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