Open the doors to opportunities in S-REITs in 2019
In our latest webcast, our Property Analyst, Derek Tan from DBS Group Research and Senior Investment Strategist, Jason Low from DBS Group Wealth Management share our views on the Singapore REITs (S-REITs) market.
Despite global market volatility, Singapore REITs (S-REITs) continue to be a safe choice given its stability and steady income growth profile. Investors can expect to continue seeking safety in S-REITs given its stability and steady income growth profile.
Backed by contribution from new acquisitions and riding on the upturn in the Singapore real estate sector in 2019 and beyond, we are of the view that most S-REITs can deliver dividend growth of between 2% to 3% per annum over 2019 to 2020.
While interest rates will continue to weigh on investors’ minds, S-REITs have taken proactive steps to mitigate the impact through maintaining a high fixed-rate debt ratio, lengthening its debt maturity profile over the past few years. We estimate that a 1% increase in interest rates will have less than 3% impact on investors.
If you're interested to tap into S-REITs, DBS iWealth® helps you seize opportunities and search for a REIT that is suited to your risk profile and portfolio.