Analysis of Singapore real estate investment trusts (S-REITs).
In this paper, we explore the performance of Singapore Real Estate Investment Trusts (S-REITs) relative to bonds and equities asset classes. The Sharpe Ratio was used as an indicator of risk-return efficiency to determine if S-REITs could be included into a typical portfolio of bonds and equities to...
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| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2009
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/15101 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | In this paper, we explore the performance of Singapore Real Estate Investment Trusts (S-REITs) relative to bonds and equities asset classes. The Sharpe Ratio was used as an indicator of risk-return efficiency to determine if S-REITs could be included into a typical portfolio of bonds and equities to provide diversification benefits. Results of our investigations revealed that the S-REITs indeed provided diversification benefits despite a slight deviation from the performance of REITs in other geographical regions. Of the factors that affected the risk-return efficiency of S-REITs, it was found that two main factors, namely, credit worthiness and earnings stability, had the most significant impact on S-REITs in maximizing their risk-return efficiency. However, investors should be aware that S-REITs have yet to undergo a full business cycle and the local market has yet to acquire a holistic view of the performance of S-REITs. |
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