S-REITs in a World on Edge: Why Long-Term Dividends Still Win
Tariffs, Tensions, and Tumbling Markets
Markets thrive on stability and right now, they are not getting it.
Donald Trump’s return to the political stage came with a 104% tariff on Chinese goods, reigniting U.S.-China trade tensions and shaking global markets. Japan’s Nikkei tumbled over 3%, Taiwan’s Taiex nearly 6%. Risk-off sentiment swept the region.
Singapore’s economy, built on trade and openness, is in the crosshairs. Prime Minister Lawrence Wong has already warned the country’s growth forecast may need a rethink.
When sentiment dives, even fundamentally strong assets can get dragged down. That includes REITs.
Not All Sectors Are Built the Same
REITs aren’t directly caught in the crossfire of tariffs. But they’re part of the broader market, and when fear takes hold, everything gets repriced, at least temporarily.
Some REITs are more exposed than others. Logistics trusts, for example, could feel pressure from disrupted supply chains and softening industrial demand. You can see it in their prices. Mapletree Log Tr is now -8% at the time of writing.
But others, like suburban retail REITs—are showing impressive resilience. Frasers Centrepoint Trust (FCT) remains nearly fully occupied at 99.5%. Shopper traffic and tenant sales are up. They’re even reinvesting in their assets, with S$51 million going into a Hougang Mall upgrade projected to yield a 7% return. It is now -0.95% at the time of writing.
Seeing Past the Panic
The past few years have tested even the most seasoned REIT investors. Higher rates, inflation, pandemic shocks. It’s been a grind. The FTSE ST REIT Index is still underwater over a five-year span.
But these cycles can also create opportunities. Many top-tier REITs are now yielding 6–7%, offering what may be appealing income potential in the current environment. And unlike speculation, income from rental properties tends to be more stable, though not without risk.
Having said so, returns are never guaranteed and no one knows if the markets will get worse. Hence you need to do your own research and have good risk management.
What Anchors Me
My own approach has never been about timing the news. It is about owning real assets that generate cash flow and holding them long enough to let compounding do its work.
Yes, markets will swing. But shopping malls don’t vanish overnight. Rents continue to come in, most of the time. People adapt, and life moves on. Unless something really bad happens? Zombie Outbreak? 😛
So I’ll keep doing what’s worked for me: staying invested, collecting dividends where I can for my coffee, and tuning out the noise.
All the best and remember to always do your own research!
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