$Lion-phillip S-Reit(CLR.SG)Context: Singapore REITs (S-REITs) have experienced correction and pullback together with re…

$Lion-phillip S-Reit(CLR.SG)

Context:

Singapore REITs (S-REITs) have experienced correction and pullback together with recent stock market correction in the US and interest rate hike expectations. In fact, Lion-Phillip S-REIT ETF (CLR.SG) has been in a downtrend since year 2020. I think this correction presents an opportunity for income focused investors looking to secure higher distribution yields that bets on real estate portfolios.

My trade:

I initiated a new position in CLR. Buying into this fund gives me diversified exposure to high quality Singapore REITs. These REITs are currently at a good price for entry with good financial health and attractive yields. This allows me to start to build a stable, recurring income stream at a lower cost.

Takeaway:

Accumulating high yielding S-REIT during market corrections effectively locks in the elevated distribution yields while waiting for market recovery. I am unsure of when the REITs will recover in price but I am willing to wait it out and continue to accumulate shares if the market corrects further.