Reits still attractive, despite a rise in long bond yields

LaBrooy says investing in Reits has an added advantage than investing in equities.

DESPITE a rise in long bond yields, a comparatively higher return from real estate investment trusts (Reits) makes it a compelling case for investors who are looking for yields that are better than 10-year Malaysian Government Securities (MGS).

Malaysian REIT Managers Association chairman Datuk Stewart Labrooy says a rise in long bond yields since the beginning of this year has narrowed the arbitrage between Reits and government bonds to 200-250 basis points.