The market continued its bullish momentum in Dec, pushing the STI 1.3%. This was also inline with the good news on Phase 3 reopening and positive vaccine news which gave investors optimism that the economy will potentially recover in 2021.
Despite the sharp rebound in the last two months of 2020, the benchmark index still recorded a total loss of 8.1% including dividends.
The REIT portfolio was impacted by the global pandemic Covid-19 as well. For the full year of 2020, the Advanced portfolio (leverage) was down by 16%, which is underperformed the STI by 7%. The Normal portfolio (without leverage) was down by 8%, which is on par with the benchmark performance. The major impact on the portfolio was due to the correction of one of our component stocks, First REIT, which was exited in Oct and replaced by Fraser Centerpoint Trust, which was up by more than 17% since we added.
Despite the DPU drop by most of the REIT due to Covid-19, the annualised portfolio yield (leverage) still remain at high yield of 8.8%.
REIT Premium Insider subscribers can login to access the Dec newsletter and the REITs portfolio. The portfolio rebalancing information can be found in the newsletter as well.
Singapore REITs have pulled back from its highs in 2020 due to the adverse impact from the Covid-19. That said, we are still bullish on the sector especially industrial REITs for their stronger fundamentals, supported by the expansion of logistics companies and e-commerce and the tight supply moving forward.
A reitscompass subscription gives you access to our REIT picks, monthly research and proprietary REIT ratings. Our picks have been generating consistent passive income and outperforming the STI over the past 5 years. Give it a try now!