CIO of major Asian bank picks a ‘great income-generating asset’ that offers 5% yield

The logo of DBS, Singapore’s largest bank.

Roslan Rahman | AFP | Getty Images

SINGAPORE — Retail real estate investment trusts in Singapore are a “great income-generating asset” that offers yields of around 5%, according to the chief investment officer of Southeast Asia’s largest bank.

Singapore is one of the largest Asian markets for REITs, which are publicly traded companies that own, operate or finance properties that generate income. REITs are typically favored by investors seeking steady dividend payouts.

“Singapore REITs I think (are) a beautiful sector to be in,” Hou Wey Fook, CIO of DBS Bank, told CNBC’s “Street Signs Asia” on Friday.

He explained that data center REITs will continue to do well because the coronavirus pandemic has accelerated the adoption of digital technology, while retail REITs will benefit from Singaporeans’ “affinity to linger in malls.”

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