Why choose Hospitality REITs over other REITs? – A personal perspective (Aug 2019)

A few days ago, I was having this conversation with a friend over lunch at Jewel Changi on investing for the long term. Presently there are various sectors in the REIT industry – Health care, Hotel & Resorts, Industrial, Office, Residential, Retail and Specialised.

In the current economic climate of digital disruption we see the rise of Airbnb, increase in digital services and changes to the way most of the industry and job functions are continuing to evolve. In the coming years there are reports of up 50% of old jobs being lost and new ones being created. Such will also mean evolution of office spaces and other life aspects. With the rise of e-Commerce and work from homes; the trend moves towards warehousing and less need for office spaces – which in turn means certain REITs might not achieve the desired dividend for the long term. Where is there are losses; there is also gains. My personal REIT selection strategy will be to focus on the Hospitality segment – Hotel & Resorts + Residential. The reason being they may be cyclical in nature; but covers an all-rounded scope in the industry.

During the past few months, did some changes to my holdings and here they are:

HK
– HSBC 0005 – 30
– iShares MSCI China Index 2801 – 81

MY
– FTSE BMKLCI 0820EA – 100
– YTL REIT 5109 – 100
– Pavilion REIT – 100
– MRCB Quill REIT 5123 – 100
– CIMB ASEAN40 0822EA – 100
– YTL 4677 – 100

US
Global X SuperSuperDiv REIT SRET – 5

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