With tariffs in the news, uncertainty, increased volatility,
global trade wars in play and current Russia and Ukraine conflict, investors
can consider having some exposure in Singapore Reits.
Why Investors should care about investing in Singapore Reits (SReits)?
3 Main reasons and pictures backed by data below: 💰
1. To cushion the declining returns from the 6 months T-Bills. Recent data released on 13March 2025 for MAS 6 Month Tbills cut off yield is only 2.56%pa. In my personal view, this declining trend of lower returns from T-bills is likely to persist.
2. Based on data from MAS, for 2025 as a whole, MAS Core Inflation is expected to average 1.0–2.0%. SReits offer compelling dividend yield of 5-6% per annual and on average around 12-16% volatility. By diversifying into this asset class, one can potentially earn capital gain, reduce portfolio volatility and collect the dpu (distribution per unit) from the Sreits. And not to forget, SReits dividend yield will likely help reduce the impact of inflation.
3. By investing in the Sreits one can create a steady SGD source of passive income by collecting distribution in SGD without currency risk versus investing in overseas reits or oversea Risk Assets denominated in USD or other currencies. As USD hit a high of 1.44 in Sept-Nov 2023. Now is at 1.33. As such, the USD may weaken over time vs SGD.
Based on the above 3 points, one can consider having some exposure to the SReits asset class to help diversify risk, reduce portfolio volatility and create another potential source of passive income for retirement, wealth accumulation or as part of a financial goal.
💰 Want to know more about individual Sreits, reach out today and let’s work together to secure your financial freedom! 🌟 Or follow, subscribe and like my content as I continue to bring relevant market updates and insights.
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or email @ ohlh@phillip.com.sg
Disclosure: Investing carries risk and are non-guaranteed in nature. Above sharing is meant for general sharing as your investment goals, financial situation, goals and time horizon may not be suitable for the asset class above.