4 REITs that defy interest rate Increase, more positive news for the China Market and my mini Retirement
Hi there! How are you on a Thursday morning? I am extremely tired as my 2 kids were down with a cold/flu for the past 2 weeks. My 1.5 years old had Covid months ago and it wasnt this bad! Needless to say, school is out for them. As I was already at the tailend of my career, I had a lot more time to care for them and i was much more patient as commented by my wife.
1 more week, and this is it. The end of my 14 years career. Though financially, we are pretty much status quo, I cant help but to feel curious about how things will turn out 1 year later. Will I decide to just rejoin the rat race or? Time will tell.
The talk recently is all about the Feds raising the interest rate and for REITs investor, how will it affect us? I am seriously not fretting too much about it. By the way, this is not the first time interest rate was increased. We have been kept at a low interest environment since 2008, but actually, starting from 2016, interest rate was rising all the way to 2.5% but then it went down again in 2019. Do you all remember what happened in 2018? The start of trade war between US-China from July 2018, and then Covid in early 2020. So really, its not the first time interest rate was increased! Did the market crash for REITs? Not really.
Let's have a look at what happened to some of the REITs in that time span from 2016 to just prior to COVID to put it in perspective.
Capland China Trust, previously known as Capita Retail China Trust. This baby has been in my portfolio since the first time I started buying REIT in 2013. It started 2016 at around 1.40 SGD and peak at around 1.60 SGD just prior to the Covid Collapse. 14% in capital appreciation plus around 6-7% dividend per year. That's not bad at all.