The Real Deal New York

What does 2018 hold for Singapore REITs?

Analyst predicts REITs' returns will be below average
January 20, 2018 03:35PM

(Credit: Pixabay)

Though last year saw prices soar, 2018 may not be the best time to invest, according to Credit Suisse Group AG.

Citing data on securities yields and government bonds’ rates, Credit Suisse’s Kum Soek Ching predicts REITs will return less than the average 3.7 percentage points for a 10-year bond, according to Bloomberg. Kum’s call for caution comes despite improving rents, recovering demand and Singaporean REITs outperforming Asian contemporaries in 2017.

“The prospect of recovering rents and distribution income has been a tailwind for Singapore REITs driving a further re-rating of the sector,” Kum told Bloomberg.

Singaporean REITs have long been a favorite for international investors, though many emerging markets REITs have failed to meet expectations. [Bloomberg] — Erin Hudson