Should REITs be internally or externally managed?

Popular investment: Marina Bay is seen against the backdrop of commercial buildings in Singapore. There are 42 REITs and property trusts in the country with a total market capitalisation of S$98bil (RM335bil). — AFP

SINGAPORE: The upcoming Sabana Industrial REIT EGM has put the spotlight on whether internal or external managers are better for a real estate investment trust (REIT).

Activist investor and unit holder Quarz Capital wants to remove the REIT’s manager and have Sabana’s trustee internalise the management function.