Get Smart: Should You Buy Singapore REITs After the US Fed Cut Rates?

The Smart Investor

Sep 26

You may have noticed this trend recently. Unit prices for Singapore real estate investment trusts (REITs) have been rising in anticipation of an interest rate cut. Then, last week, the US Federal ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2570002851"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2570002851\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2570002851?lang=en_US&edition=fundamental","thumbnail":"https://thesmartinvestor.com.sg/wp-content/uploads/2025/09/Six-Battery-Road-CICT-300x200.png","is_english":true,"pubTime":"2025-09-26 07:30","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2570002851","market":"us","top_or_hot":-1,"title":"Get Smart: Should You Buy Singapore REITs After the US Fed Cut Rates?","media":"The Smart Investor","content":"<div>\n<p>You may have noticed this trend recently. \nUnit prices for Singapore real estate investment trusts (REITs) have been rising in anticipation of an interest rate cut. \nThen, last week, the US Federal ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/get-smart-should-you-buy-singapore-reits-after-the-us-fed-cut-rates/\">Source Link</a>\n\n</div>\n","source":"thesmartinvestor_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Get Smart: Should You Buy Singapore REITs After the US Fed Cut Rates?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGet Smart: Should You Buy Singapore REITs After the US Fed Cut Rates?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-09-26 07:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/get-smart-should-you-buy-singapore-reits-after-the-us-fed-cut-rates/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>You may have noticed this trend recently. \nUnit prices for Singapore real estate investment trusts (REITs) have been rising in anticipation of an interest rate cut. \nThen, last week, the US Federal ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/get-smart-should-you-buy-singapore-reits-after-the-us-fed-cut-rates/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CFA","symbol_name":"VictoryShares US 500 Volatility Wtd ETF","start_time":0,"source_url":"https://thesmartinvestor.com.sg/get-smart-should-you-buy-singapore-reits-after-the-us-fed-cut-rates/","article_id":"2570002851","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2025/09/Six-Battery-Road-CICT-300x200.png"],"rights":{"source":"thesmartinvestor_highlight","url":"https://thesmartinvestor.com.sg/get-smart-should-you-buy-singapore-reits-after-the-us-fed-cut-rates/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2570002851","pubTimestamp":1758843000,"columns":[],"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"Should you buy Singapore REITs after the US Fed rate cut? The right answer depends on your expectations.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"CFA":"VictoryShares US 500 Volatility Wtd ETF","BK6099":"办公房地产投资信托","C38U.SI":"凯德商用新加坡信托","CFA.SI":"NikkoAM-STC Asia REIT","BK6137":"零售房地产信托","K71U.SI":"吉宝房地产信托","N2IU.SI":"丰树商业信托","BK6512":"房地产股","BK6132":"办公室房地产信托","BK6011":"零售业房地产投资信托","S68.SI":"新加坡交易所","BK6072":"多样化房地产投资信托v"},"translate_title":"聪明点：美联储降息后你应该购买新加坡房地产投资信托基金吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"C38U.SI":1,"CFA":1.5,"CFA.SI":1.5,"K71U.SI":1,"N2IU.SI":1,"S68.SI":0.6},"content_text":"You may have noticed this trend recently. \nUnit prices for Singapore real estate investment trusts (REITs) have been rising in anticipation of an interest rate cut. \nThen, last week, the US Federal Reserve finally delivered its first rate cut in nine months.   \nTo date, shares of industry stalwarts such as CapitaLand Integrated Commercial Trust (SGX: C38U), Keppel REIT (SGX: K71U), and Mapletree Pan Asia Commercial Trust (SGX: N2IU) have churned out total returns of over 20% since the start of the year. \nYet, these gains are a predicament for those who haven’t bought. \nThey’re stuck. \nWhat if you buy and REIT prices fall right after? \nAnd what if you don’t buy and unit prices keep climbing?\nTo be fair, these sound like reasonable concerns, don’t they?\nBut I have bad news: if you’re thinking in these terms, you’re setting yourself up for disappointment.\nThe Expectation GameHere’s what people don’t tell you: whether a stock does well or not depends on your expectations.\nI’ll level with you — if you bought REITs expecting to be rewarded with quick capital gains from rate cuts, it’s a case of mismatched expectations.\nYes, REITs can appreciate over time. \nThis scenario occurs when specific REITs are able to raise their distribution per unit (DPU) consistently over the long term. \nBut that’s not why most investors should own REITs.\nThe income REITs offer cannot be ignored. \nIt’s the component that’s more reliable, as REITs must pay out at least 90% of their taxable income to maintain their tax-advantaged status.\nSaid another way, it’s income you can count on if the REIT performs well.\nWhen Falling Prices Are Good NewsHere’s the thing that may surprise you: if you bought REITs for income, you’ll be less disappointed when unit prices fall.\nWhy is that so?\nSimply said — as prices fall, you’ll get to reinvest your distributions at lower prices to generate even more income. \nEach dollar of distribution buys more units, which generate more distributions, which buy more units.\nThat’s not a bad outcome, now is it?\nThink about it this way: if you’re collecting distributions for the next 10 or 20 years, wouldn’t you prefer to reinvest them at lower rather than higher prices?\n\nThe Reality CheckLet me be clear about one thing: unit prices have risen recently, but that doesn’t mean REITs are suddenly doing better.\nThere will be a time lag between lower interest rates and REITs being able to refinance their outstanding loans at lower rates. \nSome REITs have loans locked in for years. \nOthers might have hedged their interest rate exposure. \nThe benefits won’t show up overnight.\nAt the Smart Dividend Portfolio, we’re turning over each rock, checking how much debt is coming due for each REIT we own. \nWe want to know which REIT can benefit more from lower rates — not just hope they will.\nGet Smart: Focus on What MattersLet’s not kid ourselves — it’s not the kindness of lower interest rates alone that will carry DPUs higher in the future.\nRate cuts are like a tailwind for cyclists. \nThey help, but you still need strong legs to pedal up the hill.\nUltimately, it’s the combination of quality assets and capable management teams that will make the most of any interest rate environment. \nA REIT with prime properties and capable managers will thrive whether interest rates are 2% or 5%. \nA poorly managed REIT with aging properties will struggle regardless.\nThat’s what we focus on at the Smart Dividend Portfolio — finding REITs with:\nProperties in locations that matter\nManagement teams with proven track records\nThe ability to grow distributions over timeAnd that’s just the starting point. \nSo, if you’re asking “should I buy REITs after the rate cut?”, you’re asking the wrong question.\nThe right question is: “Am I buying quality REITs for the right reasons?”\nIf you’re chasing capital gains based on US Fed decisions, you’re playing a guessing game. \nIf you’re buying solid REITs for growing income over the next decade, temporary price movements become much less important.\nSo, stop watching the scoreboard. Watch the game.\nIf you’ve ever asked, “But what do I do with this info?” – read Get Smart, our weekly newsletter. It helps you connect the dots, so you understand what the stories mean for your portfolio. Join thousands of investors who rely on it for steady, grounded investing ideas. Subscribe now and sharpen your insight for free.\nFollow us on Facebook, Instagram and Telegram for the latest investing news and analyses!\nDisclosure: Chin Hui Leong owns shares of CapitaLand Integrated Commercial Trust and Mapletree Pan-Asia Commercial Trust.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}