S-REITs
Ever since i have started my investing journey, i have always been fascinated by the yield accretive returns of the Singapore Real Estate Investment Trusts (S-REITs). Despite the global market turmoils, ailing commodities and oil markets, the S-REITs continue to churn out decent and stable income streams. It is without a doubt that i would recommend to hold a good REIT (with a healthy debt ratio) in everyone's investment portfolio.
Without considering other equities (with potentially higher risks), I decided to do a quick comparisons of yields from a variety of possible investment and fixed income products with respect to my own REIT holdings (MGCT REIT ).
Credits: Thomson Reuters S-REITs Median Yield
* MGCT 7.65% Yield (As at APR)
As you can see from the screenshot, S-REITs in general offer pretty high yields compared to other asset classes. It's returns also beat the CPF and SSB yields, although these fixed income products with a theoretical zero risk.
The trade off for a bigger risk appetite is a reasonably high yield of 6-7%. A good 4.5% above the risk-free rate (CPF). So as it is, yields are highly attractive right now - Especially in a challenging business environment.
Summary
In my opinion, REITs offer an attractive, steady stream of passive income and if you’re planning to invest for dividends rather than growth, Perhaps now might be the time to start looking at some of the more well managed REITs in Singapore.
Yours,
Dream Chaser
MGCT
My holdings in the Mapletree Greater China Trust, has been consistently paying an average of 6-7% yield for the last 2-3 years.
