Wednesday, February 4, 2015

Hospitality REITS in Singapore looking attractive

I have recommended some Singapore real estate investment trusts in the past. They remain attractive as an asset class, but I would shift from the office-REIT market to hospitality trusts, which own hotels, and to health-care trusts. While office REIT's will come under pressure in 2017 because of supply coming on-stream, I am a believer in the growth of tourism in the area. Also, hospital medical expenses are tiny there, in relation to the rest of the world.

In Singapore, I like CDL Hospitality Trusts and Far East Hospitality Trust. Health-care trusts own hospitals that are leased to hospital operators. In that market, I like Religare Health Trust, Parkway Life REIT, and also aFirst REIT [FIRT.Singapore].