Martin Lee @ Sg
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More Regulatory Guidance for REITs

It was reported that MAS was considering more regulatory guidance to REITs in order to enhance corporate governance.

I hope MAS and SGX can do more to ensure a better alignment of the interests of unit holders with the manager of the REITs and also protect the interests of minority shareholders. If you had read my other article, Are Singapore REITs a Good Investment?, you will know my reasons on why I thought some of them have been detrimental to the unit holders. There have also been some interesting comments left by the other readers.

Whatever MAS and SGX decides to do, I will continue to rely on a common sense approach to investing in REITs. At the end of the day, there is a limit to what corporate governance rules can do.

Judge the manager by not what they say, but by what they do. If they buy or sell properties excessively, I will say thanks but no thanks.

And if a particular REIT manager proves to be very good at enhancing their own earnings from a REIT, I might consider investing in them instead. 😀

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