People look at REITs from a wrong angle.
The advantage of low-risk bonds is the certainty for its interest payment, not the interest payment itself. Quite opposite, its low yield is its disadvantage. So long as the issuer is not going under, it will pay its interest.
REITs, though, don't enjoy as much certainty for its distribution as payout from low-risk bonds, the predictability of its income(with its long lease and staggered renewal) is much better than most of the high-yield companies, e.g. the banks. The landscape for the local banks or the GDP of Singapore has not significantly changed since COVID, but the earning for the banks has increased a lot. Will it sustain for the next 5 years? I have my doubt as the banks did not earn that much pre-COVID when interest rate was much lower and we are entering or going to enter the low interest rate period again. The high interest rate during COVID is not the norm.
