The Reits landscape in 2021 will probably see:
- More acquisitions
- More rights issues
- Reits that recover their pre-Covid DPU will increase in price
- Sector rotation plays:
- We have already see taking profit in Industrial to buy Covid affected Retail and Hospitality.
- When vaccinations and air travel about to resume, will see profit taking in Retail to rotate to Hospitality.
- From large caps to small caps
I am now holding the following Reits:
- Ascendas Reit
- Capitaland Retail China Trust
- Capitaland Intergrated Commercial Trust
- Frasers Centrepoint Trust
- Keppel DC Reit
- Link Reit (HK)
- Mapletree Commercial Trust
- Mapletree North Asia Trust
I would like to buy back Mapletree Ind Trust and Mapletree Log Tr this year, having sold them last year. I would also like buy more of the above stocks.
I am intentionally Retail Reit sector heavy, and I also intentionally stay away from tourism related reits.
My preference of reit sector : Retail > Industrial > Office > Hospitality
Personally I think LippoMalls and First Reit are good buys now when the price are near the rights issue prices. However, there are so many other Reits to choose from, and with less risk too. Furthermore, Indonesia will probably be struggling with Covid for some time.
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