Ng prefers total returns over the medium-term. For this, she studies the REITs individually for a bottoms-up approach. Since REITs are all about the property they hold, the quality of the property and its ability to generate cash flow is key. “We look at a basket of qualitative and quantitative factors,” Ng says.
Ng Hui Min, portfolio manager at Manulife Investment Management, who looks after its Asia Pacific REIT Fund, has a few pointers for investors looking to invest in REITs. This includes lessons learnt during and after the Global Financial Crisis (GFC).
“We don’t buy REITs based on attractive headline yields for the next six to 12 months. We look at the quality and sustainability of the yield rather than the quantum of the yield,” she says in a recent interview with The Edge Singapore.
