Are S-REITs Overvalued ?
<Image credit:SGInvestor.io> If you are having more REITs in your portfolio, the chances that you are beating STI is high as most of the REITs are having good "run" so far. Overall YTD returns for FTSE ST REIT Index is 16.5% vs STI of 7.67%. Since I have more than 42% of REITs in my portfolio, quite natural that my portfolio also o utperformed STI by +6.3% with YTD returns of +13.97%. Are REITs Overvalued Now? From a long term trend perspective, valuation for S-REITs looks "rich " as you may see that is very close to +0.5SD trend line , a level never seen since May 2013. You may also notice that the dividend yield for some of the blue-chip REITs been compressed to 4-5% like Capital Mall REIT/ Capital Commercial REIT/ FCT / Ascendas Ind REIT/ ParkWayLife REIT or even Keppel DC REIT.
