SINGAPORE (Feb 28): Efficient access to Asia’s Capital has established Singapore as an international hub for the listing and trading of international REITs. With the foundation of a favourable tax regime and well-established legal system, Singapore was the largest global REIT IPO platform in 2019.
While dividends have a history of attracting investors to the REIT market, the ability for a REIT to raise secondary funds to facilitate portfolio growth is also important. Portfolio growth can also benefit unitholders through asset price appreciation, with the converse also applying to prices when portfolios contract. Last year also saw a record year for REIT secondary fundraising activity in Singapore, mostly to facilitate property acquisitions.
REITs for dividends and growth?