18 July 2022

Money and Me: REIT picking in an inflationary environment

For the first half of 2022, the iEdge S-Reit Index has displayed strong resilience, generating flat total returns. In fact during the period, the S-Reits and property trusts sector in Singapore saw S$359 million of net institutional outflows and S$447 million of net retail inflows. Kenny Loh, REIT Specialist and Independent Financial Advisor joins Melissa Hyak on Money and Me as they discuss his 2H2022 outlook for Singapore REITs and what investors should know when REIT picking in this inflationary environment.

Timestamps

0:18 Intro

1:09 2nd Half 2022 Outlook

1:25 How has the S-REIT market fared so far this year?

2:59 Overview on last few years’ S-REIT historical performance: we are not at pre-COVID levels yet

4:06 How would you rank each REIT sectors? (Hospitality, Industrial, Retail etc.): Hospitality sector is the only sector with the most gains this year

5:21 Why is the Data Centers’ sector not performing well?

7:28 Do you still see the Hospitality sector performing well in 2H 2022? What other sectors do you see performing well?

9:11 Surviving the recession: What REIT sectors do you think are more resilient during the downturn?

11:58 Kenny’s tips on selecting the correct REITs to invest

• Basic 3 Ratios: DPU Yield, Gearing Ratio, Price/NAV value
• Recovery Ratios: Occupancy Rate, WALE, Property Yield
• Debt Management: Cost of Debt, % of hedged interest rate, ICR, WADM, % Unsecured Borrowings
• Red Flags to look out for

15:07 Outro

Listen to his previous market outlook interviews here:

2022

• Money and Me: Are Hospitality REITs the clear way to play the reopening trade in Singapore? (June 2022)
• Money and Me: Can S-REITs maintain its upswing from Q1? (May 2022)
• Money & Me: The case for being bullish on S-REITs amid the Ukraine crisis (March 2022)
• Money & Me: Optimism for S-REIT’s given earnings signals and mapping the possibilities for shareholders in the Mapletree merger (February 2022)
• Money & Me: Mapletree merger, growth in commercial S-Reits and the potential return of Reit IPOs in 2022 (January 2022)

2021

• Money & Me: First Reit, CapitaLand, Daiwa, Digital Core Reit and the best of the S-Reit pivots (December 2021)
• Money and Me: VTL’s and hospitality and retail, a new Reit ETF and Making sense of offers for SPH (November 2021)
• Money and Me: Who benefits from the ESR – ARA Logos Logistics Trust merger? (October 2021)
• Money and Me: China’s Evergrande Group property and the spillover in the property market, breaking down what CapitaLand Invest means for the investor and global REITs to watch (September 2021)
• Money and Me: Are retail and hospitality aggressive plays given the pace of reopening? (August 2021)
• Money and Me: Which REITs have seen a limited impact on occupancy during COVID? (July 2021)
• Money and Me: An overview of the REIT performance (June 2021)
• Money and Me: S-REIT’s: which are most likely and which least likely to be affected by new social restrictions? (May 2021)
• Money and Me: What’s the link between bond yields and S-REITs? (April 2021)

2020

• Money and Me: REITS that did well in 2020 (December 2020)
• Money and Me: An overview of S-REITS, value rotations and REITS paying out higher dividends (November 2020)
• Money and Me: Yield Generating Asset Classes (October 2020)
• Money and Me: The REIT outlook within and beyond Singapore (August 2020)
• Money and Me: Ugly Duckling Earnings turning into Beautiful S- Reit swans? (July 2020)
• Money and Me: V for S-REITs? (June 2020)
• Money and Me: Will revenge spending help REITs? (May 2020)
• Money and Me: What REITs to Look out for? (April 2020)
• Money and Me: Crazy REIT Sales (March 2020)

Kenny Loh is an Associate Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  

You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement