The story of Singapore Real Estate Investment Trusts (SREITs) over the past five years is nothing short of chaotic. For a long time, SREITs have been a cornerstone of my investment strategy, but these recent years have been particularly challenging. Tracing back to the tumultuous beginnings with the 2020 COVID-19 crisis, SREITs faced relentless declines in value. The pandemic set off a chain reaction that saw their prices battered incessantly.
Following the pandemic-induced economic turmoil, excessive global money printing led to runaway inflation. In response, the U.S. Federal Reserve began hiking interest rates sharply, which resulted in a sudden surge in financing costs as well as a boost in borrowing and leverage ratios for these trusts.
Just when we started to hope for a respite, thinking that inflation was finally getting under control and that interest rates might start to ease, another obstacle emerged. This time, the issues stemmed from geopolitical tensions, notably initiated by Donald Trump’s tariff policies—which many viewed as the spark for an impending global recession. Many SREITs, including some of my long-time favourites like Mapletree Industrial Trust (MIT), have taken a significant hit. As of April 8, 2025, MIT finds itself at a five-year low, underscoring the challenging landscape for investors in this sector.
