Singapore has a variety of Real Estate Investment Trusts (REITs) available, differentiated by yield, asset type, and regional operating strategy. Investors can choose from different S-REIT offerings for diversified real estate holdings in a local or international portfolio, with differences in performance, fees, and commissions. There are also “syariah” REITs that observe religious/cultural rules in their rental properties or other acquisitions.
Although the Real Estate Investment Trust (REIT) is a somewhat new instrument for most of the Asian market, there are now a variety of Singapore REITs differentiated by important aspects such as yield, asset type and regional operating strategy. Investors can choose from these different Singapore REIT or S-REIT offerings for diversified real estate holdings in a local or international portfolio. Knowing some of the key differences between these types of funds can help international investors make better financial decisions about their REIT options, and understand how these funds are likely to perform in specific economic climates.
Experts note that the entry of the REIT tool into the Singapore markets occurred as recently as 2002. These days, a variety of S-REITs, or Singapore REITs, are available through regional exchanges. These real estate funds differ in the types of strategies they undertake to increase returns, the types of assets they acquire, and even the underlying “rules and regulations” for the properties acquired.
Like REITs in other parts of the world, Singapore REITs have a different “asset composition,” which is one way to understand the general types of S-REIT offerings. These include industry REITs, which focus on commercial properties, hospital and healthcare REITs, which specialize in medical facilities, and apartment or residential REITs.
Singapore REITs also vary by performance. A list of available S-REITs will show the projected return for each individual fund, so investors can choose the level of potential return, as well as risk and volatility, included in a fund offering. Investors can also check the different fees and commissions for each available fund. These funds may also differ in how they can be tracked and traded on Forex exchanges.
Another significant difference in Singapore REIT types is the difference between those that are more like other international REITs and those that exhibit a distinctly regional character. Experts are talking about “syariah” REITs in Singapore that observe some religious/cultural rules in their rental properties or other acquisitions. Syariah “enforcement” can include bans on alcohol, tobacco, and pork, similar to religiously motivated edicts by governments around the world. These differences are worth understanding for investors wishing to participate in Singapore REITs.
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