In Singapore, the earnings season for real estate investment trusts (REITs) has started in earnest. The Federal Reserve (Fed) is raising interest rates given higher inflation in the US and this has caused concern on the prospects of growth stocks.
In Singapore’s case, it has also shone a spotlight on REITs given their reliance on cheap debt to fund the growth of their portfolios.
Overall, it was another reliable quarter from the solid and defensive healthcare REIT. Given healthcare is generally perceived as “safe” in times of turbulence, investors just have to accept a lower dividend yield.
That’s certainly the case for Parkway Life REIT, with its 12-month forward distribution yield at 2.9% based on its latest unit price.
Disclaimer: ProsperUs Head of Content & Investment Lead Tim Phillips owns shares of Parkway Life REIT.
Tim, based in Singapore but from Hong Kong, caught the investing bug as a teenager and is a passionate advocate of responsible long-term investing as a great way to build wealth.
He has worked in various content roles at Schroders and the Motley Fool, with a focus on Asian stocks, but believes in buying great businesses – wherever they may be. He is also a certified SGX Academy Trainer.
In his spare time, Tim enjoys running after his two young sons, playing football and practicing yoga.