REITs let you own a mall without buying a mall. In SG, 12 of 40 REITs yield 6-7.5%; Indonesia's DIRE is nascent but growing. The trick is not yield alone — it's lease quality.
Checklist Before You Buy
- Occupancy >92% — below means leasing trouble.
- WALE >4 years — weighted average lease expiry; longer = stable.
- Gearing <40% — debt/assets; over 45% is fragile when rates rise.
- Fee: manager <0.4% AUM + performance <5% NPI — SG REITs disclose; DIRE less transparent, ask prospectus.
SG vs ID Comparison
SG: Ascendas (industrial, occupancy 94%, yield 6.2%), Mapletree Logistics (6.8%). Liquidity high, dividends taxed 0% for SG residents. ID DIRE: yield 8-9% but occupancy 80-85%, liquidity thin — only for patient.
Strategy
Don't buy 1 REIT; buy 5 across sectors (retail, industrial, office). DCA quarterly, reinvest dividends. If yield >8% with occupancy <88%, it's a trap — market pricing risk.
Bottom line: REITs are boring income — exactly why they work. Filter by lease, not hype.