Thai REITs Tipped to Offer 10 to 15% Returns This Year (The Bangkok Post)

April 6, 2021 – Real estate investment trusts (REITs) and infrastructure funds are likely to offer attractive returns of around 10-15% this year, bolstered by the reopening of international travel and the prospects of higher hotel occupancy rates, says Win Phromphaet, chief investment officer at Principal Asset Management.

REITs and infrastructure funds reported better performance in the fourth quarter last year, even though returns lagged the SET Index and stocks in the same sector.

“Local REITs returned to investors’ attention in February, but their prices are still behind the market by about 20-30%. REITs and infrastructure funds in other countries, namely the UK, Singapore and Australia, have rebounded to pre-Covid levels already,” he said.

Mr Win said the fundamentals of Thai REITs and infrastructure funds are quite different from their global counterparts because Thai REITs are concentrated in the hotel and retail industry, which has been battered by a slump in tourists and spending power.

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