Real estate investment trusts (REITs) are an overlooked investment avenue that has lost its popularity in recent years.

As an alternative investment to traditional properties, I will talk about the diverse landscape of Singapore-listed REITs. I will provide insights into different types of REITs and the benefits they offer.

List of Singapore-listed REITs

The Singapore market boasts a wide range of REIT options. This allows investors to access various sectors and property types.

To provide a comprehensive overview, click here to download the complete list of Singapore REITs you can leverage into your portfolio:

Types of REITs listed in Singapore

#1 Retail REITs

Retail REITs focus on properties such as shopping malls, retail outlets, and commercial spaces.

These REITs generate income from rental payments made by tenants. Some key points about retail REITs include:

  • Stable cash flow derived from long-term leases with established retailers.
  • Potential for capital appreciation driven by consumer spending trends.
  • E.g., CapitaLand Integrated Commercial Trust, BHG Retail REIT

#2 Office REITs

Office REITs primarily lease office spaces to corporate tenants. Consider the following points when exploring office REITs:

  • Rental income stability due to long-term lease agreements with reputable companies.
  • Location and demand dynamics significantly impact performance.
  • E.g., Keppel REIT, Manulife US REIT

#3 Industrial REITs

Industrial REITs own properties such as warehouses, logistics centres, and industrial parks. Key aspects of industrial REITs include:

  • Increasing demand for industrial properties driven by e-commerce and supply chain expansion.
  • Growth potential due to Singapore’s strategic position as a global logistics hub.
  • E.g., Capitaland Ascendas REIT, Mapletree Logistics Trust

#4 Hotel and Resort REITs

Hospitality REITs focus on properties like hotels, resorts, and serviced apartments. Consider the following points when exploring this sector:

  • Exposure to the tourism industry and its cyclical nature.
  • Income is generated through room rates and occupancy levels.
  • E.g., Far East Hospitality Trust, Frasers Hospitality Trust

#5 Data Center REITs

Data centre REITs own and operate data centres, which are critical for storing and managing digital information. Key points regarding data centre REITs include:

  • The growing demand for data storage and processing is driven by cloud computing and digitalization.
  • Stable income streams from long-term contracts with technology and telecommunications companies.
  • E.g., Keppel DC REIT

#6 Healthcare REITs

Healthcare REITs focus on properties such as hospitals, medical office buildings, and senior living facilities. Key aspects of healthcare REITs include:

  • Demographic trends and an ageing population contribute to sustained demand for healthcare-related properties.
  • Long-term lease agreements with established healthcare providers ensure stable income.
  • E.g., Parkwaylife Real Estate

#7 Diversified REITs

Diversified REITs have a mix of properties across different sectors, offering investors exposure to various segments of the real estate market. Consider the following points when exploring diversified REITs:

  • Built-in diversification helps mitigate risk by spreading exposure across multiple property types.
  • Potential for stable income from various sectors, depending on market conditions.
  • E.g., Suntec REIT

In essence…

To maximize potential returns while managing risk, it is crucial to diversify your REIT portfolio.

By investing in various types of REITs, such as retail, office, industrial, and hospitality, you can mitigate the impact of sector-specific risks and benefit from opportunities across the real estate market.

To help you kickstart your REIT investing journey, I have compiled a REIT infographic with the whole list of Singapore-listed REITs.

Click here to download the complete list of Singapore-listed REITs

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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