There are winners and losers among the industrial REITs. “Data centres are benefitting the most because of cloud computing and higher data usage. Logistics properties are benefitting from e-commerce and because habits of shoppers have changed. So logistics REITs could benefit,” Wong suggests.
SINGAPORE (July 17): In a webinar held by The Edge Singapore and EdgeProp on July 11, Wong Yew Kiang, head of research at CLSA, gave a quick rundown of the Singapore REIT (S-REIT) sector and his view on virus-resistant REITs. They are, in order of resilience: Healthcare; industrial, in particular data centres; followed by logistics; then office; retail and hospitality REITs.
“Healthcare REITs are the most resilient because most are master-leased with very long leases and with rental agreements where they are stepped-up and inflation-linked,” Wong says.
