SREITs Investment Snapshot

SREITs offers a yield of 4 to 7%, higher than deposit rates, broad equity market dividend yield, as well as REITs in major markets

SREITs have a moderate correlation to both stocks and bonds, and at lower volatility

Inflation leads to higher rents, which is positive for SREITs

SREITs offer exposure to real estate, across a wide range of sub-sectors and geography.

individual SREIT ETF investors enjoy a tax-exempt distribution on taxable income.*

Interest rates are peaking as inflation is easing, and the next move is likely rate cuts.

SREITs’ cost of debt are closer to market rates and the erosion of distributions will soon fade.

SGD and overseas income stabilizing as inflation eases

High single digits to teens rent reversions underpin income

A soft landing is the base case, but in the event of a hard landing, SREITs are better insulated and priced than other REIT markets given the reasons listed on the left in “Why Now?”

Gearing at 39% is comfortable, and more so given the proposed higher gearing limit. Some SREITs may want to retain the optionality to increase debt headroom and may raise equity closer to book value.

Source: Shorea Advisors, Bloomberg, past performance is not indicative of future performance

“The above is intended for general information purposes only. This material and the information contained in this material shall not be regarded as an offer or solicitation of business in any jurisdiction to any person to whom it is unlawful to offer or solicit business in such jurisdictions. This document is not to be construed as recommendations to buy/sell any above-mentioned securities, or any securities in the above-mentioned sectors or jurisdictions.

CSOP Asset Management Pte. Ltd. (“CSOP”) believes that information in this document is based upon sources that are believed to be accurate, complete and reliable. However, CSOP does not warrant the accuracy, reliability, timeliness, completeness or reasonableness, and CSOP and any of its affiliates shall not be liable for any loss, damage or expense incurred directly or indirectly by any recipient and/or its controlling shareholder as a result of the use of and/or reliance on this information.

This above may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, and estimates of yields or returns. The opinions expressed in this document only reflect the judgment of CSOP on the date of preparation of the material, and may be changed at any time due to subsequent changes in circumstances without prior notice. CSOP is under no obligation to keep the information up-to-date. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without the written consent of CSOP.

Advice should be sought from a financial adviser regarding the suitability of the investment and/or investment product before making an investment. Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not necessarily indicative of future performance. Investor should read the prospectus and product highlights sheet, which can be obtained on CSOP website or authorized participating dealers, before deciding whether to invest. Investors should consult their own tax advisers concerning the tax treatment in their particular situation. This above is not applicable in jurisdictions where the distribution of this material is restricted. This document has not been reviewed by the Monetary Authority of Singapore.”