Stellar rally puts valuations of Singapore REITs in focus

High yields, possible acquisitions seen as supporting factors

20190711  SGX

They are an important sector for the Singapore Exchange as they have a combined market value of over 100 billion Singapore dollars ($73.7 billion) © Reuters

SINGAPORE (Nikkei Markets) -- Singapore-listed real estate investment trusts have risen around 20% since the start of the year, prompting fears that they have become too expensive.

But recent measures have added to their appeal for many analysts who continue to have a buy on these assets. Not only are their yields well above those of high-quality government bonds, there is now a greater chance of REITs buying new assets, which could boost valuations.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.